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

I fully reject that characterisation. I refer Senator Wong to the statement that was issued by the Business Council to the Senate:

We believe that a reduction in the corporate tax rate, as proposed through the Government's enterprise tax plan, is urgent and vital to keep Australia competitive—

and, of course, further—

If the Senate passes this important legislation we, as some of the nation’s largest employers, commit to invest more in Australia which will lead to employing more Australians and therefore stronger wage growth as the tax cut takes effect.

Now, that is economic orthodoxy: businesses investing more. That is, of course, precisely what we want to achieve by reducing our business tax rate and making it more competitive globally. It will lead to more jobs and higher wages. Don't take my word for it; that is what Bill Shorten used to say day in and day out when he was the Assistant Treasurer. He used to make that point day in and day out, and, of course, it is true. I refer you to Bill Shorten's very concise quote:

Cutting the company income tax rate increases domestic productivity and domestic investment. More capital means higher productivity and economic growth and leads to more jobs and higher wages.

That was from Bill Shorten, as the Assistant Treasurer, in the House of Representatives, 23 August 2011. I could not have put it better myself.