Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I think it is really interesting that Senator Carr continues to prosecute the case against former Prime Minister Gillard. All of the arguments he is running are arguments against the policy measure that Ms Gillard and Mr Swan initiated in their last budget in government. Ms Gillard and Mr Swan made a judgement that it is not appropriate for businesses generating more than $20 billion a year in profits to have the benefit of tax deductions well in excess of 30 per cent—40 to 45 per cent. It is appropriate to have the usual 30 per cent reduction that applies across the board. Why should a company generating more than $20 billion in profit a year be able to claim more than the applicable company tax rate as a deduction? We think 30 per cent is appropriate. We agree with former Prime Minister Gillard and former Treasurer Swan that it is more appropriate to bring that down to the applicable rate across the board. That will help repair the budget. That is why we are implementing the budget measure that Labor initiated in government.