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

Well, a business that doesn't make any profits doesn't pay any tax. That is something Senator Cameron doesn't understand. In Australia you don't pay tax on turnover; you pay tax on profit. If a business makes losses, as Qantas was making under the period of the Labor government, the workers are less secure in their jobs, there is less opportunity for new jobs and there is less opportunity for small and medium-size businesses providing goods and services to a business like Qantas. How much better is it that profitability is now stronger? As profitability improves job security, as it increases the opportunity to invest in further business expansion, more people will be hired. As more people are hired and as there is more competition for the remaining workforce that is currently unemployed, then of course wages will go up by more. That is the basic rule of supply and demand. If supply is shrinking and demand is strengthening—which is what we want—then prices will go up. We want demand for workers to go up on the back of stronger economic growth, and of course we want supply of labour to go down because fewer and fewer people are unemployed. Under Labor, rising unemployment; under the coalition, increasing employment. (Time expired)