Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. Can the Prime Minister confirm that, by the time they are fully implemented, stage 3 of the government's personal income tax scheme and its big business tax cut will cost the budget at least $25 billion a year? Why won't the Prime Minister support Labor's plan for a bigger, better tax cut for 10 million Australians who earn less than $125,000, instead of giving $25 billion a year to big business and high-income earners?

Mr Sukkar interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Deakin will cease interjecting.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I will invite the Treasurer to add to this answer, but I think it's worth noting that the question has been asked by the author of that famous economic tome Hearts & Mindsit's available wherever remaindering occurs—that great text which advocated a 25 per cent corporate tax rate when it's affordable. I'll tell you when it's unaffordable: it's unaffordable when you're uncompetitive. It's unaffordable to have a company tax rate in Australia that is at the top of the OECD. The honourable member wrote a book and talked about the importance of having a competitive tax rate. Now, having done that, he's been forced to eat his words, and he's flinging himself in the way of a competitive tax rate. I'll ask the Treasurer to add to my answer.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the Prime Minister for the opportunity to add to that answer. I wouldn't be relying on the shadow Treasurer's figures anyway, anywhere, anytime. This is a shadow Treasurer who came up with this genius of a plan to hit pensioners, retirees, all of these, and strip away their tax refund. He announced it with great fanfare and he said, 'We'll raise $59 billion, and I won't change a jot of it.' Then, within two weeks, he was tripping over himself to come out with amendments to his own policy. Then we find out that he says it will cost 55.7. So we took his entire policy that he announced to the Australian people and we asked Treasury to cost that policy, and it comes in at a revenue of $10 billion less than he said. And he's saying: 'Trust us. Trust Labor with money. We always get it right.' Well, I'm looking over there—I can't see him today, the member for Lilley; he must be otherwise engaged today!

An honourable member: Viva El Presidente!

Where is El Presidente? The member for Lilley was a genius when it came to adding up tax revenues on the mining tax. There he is! He's up the back there. I've found him. It's bad enough that they can't add up, but the problem is that they go and spend the money that's not there. That's how the member for Lilley—and the member for Rankin was in there helping him every step of the way—completely stuffed the budget. And, for the last five years, almost, we have been repairing the wreckage of the member for Lilley, ably assisted by the member for Rankin, the member for McMahon and all the other muppets who helped him.

Mr Pasin interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Barker will cease interjecting.