Chris Crewther (Dunkley, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister: Will the Prime Minister outline to the House how and why lower taxes are an important part of the government's plan for a stronger economy, including in my electorate of Dunkley? Is the Prime Minister aware of alternative approaches, including how higher taxes discourage investments and jobs?

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

I thank the honourable member for his question. We know that lower taxes encourage businesses to invest. We know that lower company tax encourages business to invest and to employ. It supports stronger economic growth. It supports more jobs and higher wages. And every Labor leader, including the gentleman opposite, has made exactly that point in defence of reducing company tax. The member for McMahon famously wrote a book about it, so committed was he to it—25 per cent tax. The government has already achieved, through the parliament, a reduction in company tax for businesses with turnover of up to $50 million a year. These are overwhelmingly small and medium businesses, family owned. They employ over half of the private sector workforce. They have been responding to the encouragement we've given by investing and building, and growing their employment.

Today I spoke to Wayne Licht, who is one of the owners of Stubbs Constructions in Burnie. It's an 80-year-old firm. Wayne started off in that firm 40 years ago as an apprentice. Aspiration wasn't a mystery to him—no, it wasn't. He worked hard, he wanted to get ahead and now he owns part of the business. His business has a turnover of around $20 million a year. It has 63 employees.

Ms Chesters interjecting—

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

The member for Bendigo is warned.

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

That business would face, were Labor to become the government, an increase in their tax. This is a strong Tasmanian business. It's the type of business that Tasmanians are proud of: family owned, longstanding. It's a construction company. It's building houses, schools and all sorts of facilities there on the north-west, and that is a company that we are backing, as we are backing thousands of other Australian companies. What does the Labor Party have to say to them? 'Pay more tax.' That's what the Leader of the Opposition wants them to do. This announcement was made today by him without any reference to his shadow cabinet or caucus. We remember the moment when the member for McMahon was asked what Labor's approach to our small and medium family company tax cuts would be, and he said:

We have further policy announcements to make which will be in this space …

There was no 'we' in the space today. It was just the Leader of the Opposition, with a captain's call, seeking to counterattack against the member for Grayndler. The only job he's interested in is his own. (Time expired)