Ted O'Brien (Fairfax, Liberal Party) Share this | Link to this | Hansard source

My question goes to the Treasurer. Will the Treasurer please remind the House why only the Morrison government can be relied upon to cut taxes and to ensure businesses, workers and families keep more of their own hard-earned money? And is the Treasurer aware of any constructive proposals being put forward that would be an alternative to the government's tax policies?

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

) ( ): I thank the member for Fairfax for his question. I acknowledge his experience, starting off as an apprentice baker in the private sector and most recently championing the very successful Olympic bid for Brisbane. Congratulations to the people of Queensland and, indeed, Australia.

On this side of the House we don't just talk about lower taxes; we deliver lower taxes. That is our track record. They are our policies. What we have seen pass through the parliament are the most significant income tax cuts in a generation, with the abolition of a whole tax bracket.

Dr Chalmers interjecting—

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

The member for Rankin is now warned.

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The 37-cents-in-the-dollar tax bracket is now legislated to go, completely, creating one big tax bracket between $45,000 and $200,000, where people pay a marginal tax rate of no more than 30 cents in the dollar.

For small businesses with a turnover of under $50 million, we've cut the tax rate as of 1 July to 25 cents in the dollar. In this year's budget we've put in place a patent box to provide a concessional company tax rate of 17 per cent for businesses in the medical and biotech sector that, through their research and development, develop patented ideas that earn income. If they do so here in Australia they will receive a concessional company tax rate.

On immediate expensing: we have passed legislation and implemented policies in successive budgets which provide for businesses to write off acquisitions of machinery and equipment, upgrades to their retail shops or upgrades to their production lines, ensuring they can write all that off in year 1. Whether you're a farmer with a harvester or whether you're a retailer with a shop fitout, you can write off all those acquisitions or upgrades in year 1. And the loss carry-back measure is another important tax reform designed to help get people through.

But I'm asked about those opposite, because we know that they have opposed our tax cuts every step of the way. Like the stage 3 tax cuts—

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

I will just say to the Treasurer that he's not able to do this on this occasion, because the question asked was whether there are constructive proposals being put forward. If there are constructive proposals, you can outline them; if there are not, you can resume your seat.

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The reality is that the stage 3 tax cuts, which we supported and those opposite did not support, have been a constructive proposal designed to lower people's taxes. What do lower taxes lead to? They lead to more jobs. And what do more jobs lead to? They lead to a stronger economy. We on this side of the House have walked and talked and delivered lower taxes for millions of Australians and their businesses in order to create a stronger economy.