David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Hansard source

Today, we are talking about the need to cut company tax rates. For years the Liberal Democrats have talked about the new jobs and higher wages that would come from cutting the company tax rate. But we have to change this message. It is no longer so much about winning new or higher-paying jobs. It's about keeping our current, poorly paid jobs. The message of hope is less relevant. Unfortunately, it is fear for our jobs that needs to motivate us now.

In 2003, the worldwide average corporate tax rate was 30 per cent. That's our current rate. In 2016, measured across 202 tax jurisdictions, the corporate tax rate was 23 per cent. It's now 19 per cent in the UK and 17 per cent in Singapore. It's 12.5 per cent in Ireland. And now the United States has cut its company tax rate, and the federal rate there is now 21 per cent. Even socialist countries like France are cutting their company tax rates to below ours. As a result, the great majority of the countries of the world charge companies far less than Australia does for the privilege of investing in their countries. So the great majority of the world's investment is passing Australia by, along with the jobs and wage growth that come with it. And it will only get worse while our company tax rate remains stuck at 30 per cent, notwithstanding the minor concessions for small businesses.

We need to live in the real world. Lamenting, ignoring or quibbling about the lower company tax rates in the rest of the world won't make them rise back up to Australia's rate, and it won't make foreigners invest here instead of elsewhere. Our current jobs, as unsatisfying as they may be, are at risk if we stand still. Not for me or others who suckle on the taxpayers' teat, but for the six in seven employees who work in the private sector in Australia. Those who refuse to acknowledge the connection between attracting company investment and the employment and wages offered by companies are either stupid or devious. Either way, they are traitors to the everyday Australians we are supposed to represent.