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

The reason that company tax cuts are important for the future success of even businesses that are making a loss today or which did so yesterday is that businesses will make investment decisions on their expectations of future profitability. They will assess their future opportunity to make a profit. They will consider the future opportunity of after-tax profits, and they will make investment decisions today on that basis. They will make decisions today on whether or not they will expand their business, which could go to whether they will hire more Australians. As they make decisions to hire more Australians, they put more competitive pressure on wages—and that is how wages go up. These are basic fundamentals. (Time expired)