Fraser Anning (Queensland, Independent) Share this | Hansard source

This is not my first speech. I rise today to speak on the Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017. While I support the government's company tax cuts, I don't believe they go far enough or are being implemented fast enough. Unlike the recent US tax cuts, which were considerable and immediate and have resulted in almost instant benefit to American workers and the American economy alike, the gradual implementation of a five per cent cut over almost the next decade means that all Australians forgo a major benefit until its complete implementation. While some of my colleagues feel that it's a handout to big business or trickle-down economics, and our current rate of 30 per cent should remain frozen for all time, the simple fact is: as a country, we're already uncompetitive on the global stage. These reductions to 25 per cent will still only take us, as a nation, back to the middle of the pack globally and the high end of the scale in the Asia-Pacific region.

What we actually require are further reductions, making Australia a more attractive location to do business. I would suggest that there is not one person in this room who would shop anywhere but where they felt they got the best deal. Corporations are no different. They will do business where they feel they are getting the best for their company. Right now, Australia, in terms of our corporate tax rate, is offering one of the worst deals, and, as a result, many businesses have gone elsewhere. We need to compete for these companies' business. Further reductions will entice business to headquarter their operations here, while also keeping their money onshore. Such reductions in the rate will also enable companies to reinvest more of their profits in things such as upgrading their equipment and machinery and growing their business with human resources. We will see a flow-on to the Australian worker, with productivity and eventually real wage growth.

We have seen some of these benefits already, with Lockheed Martin, the world's largest defence contractor, earmarking some of its expected windfall as a result of Trump's tax cuts for their pension program. The company has also come out and stated it is going to increase its commitment to initiatives like employee training and charitable contributions, particularly for education, science and maths. Businesses like AT&T have also reported they will have more financial flexibility as a result of the US tax cuts. I have experienced firsthand the effect of Mr Trump's tax cuts. My two daughters own a small business in the United States. As a result of the immediate and substantial reduction, my girls have been able to do some much-needed upgrades on their premises, they have employed two more staff and they've increased wages for all staff to ensure they are retained into the future.

Recently we have seen the normally reserved IMF come out and say the US tax overhaul was a major factor in global growth rising to 3.9 per cent this year. They have also stated that the corporate tax rate reduction will contribute noticeably to US growth over the next few years.

As the minister highlighted, critically, the majority of the gains from the company tax cut are expected to flow through to the Australian worker in the form of increases in real wages. Those opposite always say they are for the worker and the embattled. Well, this is an opportunity for them to show it. We have seen successive Labor governments like that of Gillard in 2010 promise to cut company tax rates, with then Treasurer Wayne Swan, who you will all recall was voted the world's best Treasurer in 2011, saying:

Reducing company tax will create new jobs and grow the economy right around the country.

The Leader of the Opposition, Mr Shorten himself, has previously criticised the Greens and their opposition to similar so-called big business tax cuts proposed by Labor. The arguments previously used by those opposite to support tax cuts in the eighties, nineties and 2000s equally apply today. As such, I call on those opposite and my colleagues on the crossbench to support Australia's workers and vote in favour of the government's legislation. Thank you.