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

I thank Senator Hume for that question. Yes, I can. A proposal of the Trump administration to reduce business tax rates in the US from 35 per cent to 20 per cent has now passed both houses of the US Congress. That makes the passage of business tax cuts in Australia more urgent because, if we don't, it will lead to less investment in Australia, lower growth, fewer jobs and lower wages. Of course, a vote against our proposal to reduce business tax rates for all Australian businesses to 25 per cent—let me say it again—would be a vote for less investment in Australia, lower growth, fewer jobs and lower wages. And it would be on the head of the Labor Party if in Australia we ended up with less investment, lower growth, fewer jobs and lower wages.

Senator Cameron interjecting—

Yes, it would also be on the head of Senator Cameron if he continues to vote against lower business taxes in Australia.

A vote against our proposal to reduce business tax rates for all Australian businesses closer to the OECD average now of 22.5 per cent would be a vote to wilfully damage the Australian economy and jobs. That is because it would be a vote to put Australian businesses at a competitive disadvantage. Australian businesses are competing for investment with businesses from around the world. Of course, Australian businesses are competing in export markets around the world. With the US legislating to reduce its business tax rate to 20 per cent, many more businesses will be able to attract investment away from Australian businesses. Attracting investment away from Australian business means lower growth in Australia, which means fewer jobs and lower wages. It means those businesses in Australia will be less successful than they otherwise would be. Of course, a vote by Labor to stand in the way of business tax cuts will be a vote to wilfully damage the Australian economy.