Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Hansard source

I rise to speak on the Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017. Before I commence with the remarks I've prepared, I want to respond directly to Senator Abetz, who says he invites the chamber to read the comments of me and others in relation to the company tax cut that was considered under the former government. I'd make this point: we were very clear that the company tax cut had to be funded out of changes to the business tax system. Do you know what this government is doing? It wants working people—working people!—to fund the cuts for big business. There's a very stark difference in the position that the Labor government took and the position that the coalition is taking. In fact, there are few policies in recent years that I think have more starkly illustrated the difference between the Labor Party and the coalition than this government's commitment to handing $65 billion to Australia's biggest and wealthiest companies.

Recall that this is a tax cut which comes at a time when government debt is at record levels, when Australia's health system is under pressure, our schools need more resources, and inequality in this country is worsening. What do we see this government's priority as? Their priority is giving a massive handout to our most powerful and most wealthy. It's also a transfer of wealth offshore, with an estimated 60 per cent of the benefit of the tax cut likely to head overseas. Remember that this is on top of the $19 billion this government is giving our wealthiest taxpayers over the next decade by cutting income tax for people earning over $180,000. The only income tax cut we have seen in the five years the Abbott and Turnbull governments have been in power is for people earning over $180,000. In the very same budget, where this government reaffirmed its commitment to giving big business a $65 billion tax cut and cutting income tax for people earning over $180,000, it slugged working- and middle-class Australians with a $44 billion tax hike—a $44 billion tax hike! That's what the Medicare Levy increase costs. These are their priorities: a tax hike for middle Australia, a tax cut for the wealthiest taxpayers and a massive handout for big business. At a time when we see school funding being cut, universities being forced to push up fees, the out-of-pocket costs of health care soaring, the government demanding pensioners work until they're 70 and the government continuing its intention to cut the energy supplement, the biggest companies in the land are being handed $65 billion.

Of course, there's the debt. Gross Commonwealth debt has hit $520 billion. This is the party that said they'd deal with the debt and deficit disaster. Remember the debt and deficit disaster? Gross Commonwealth debt has risen almost $250 billion since they've been in government. They are very quiet over there, aren't they? They hate to be reminded of the fact that debt and deficit under them has gone up $250 billion. You've made the debt and deficit disaster $250 billion worse. Now you want to make sure that you give a company tax cut so that the budget is in a worse position. Which companies are so deserving of the massive act of generosity from the Turnbull government? I'm glad Senator Williams is in here because, of course, among those undeserving recipients is the banking sector. He knows a bit about that.