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

My question is to the Minister representing the Treasurer, Senator Cormann. I refer to page 41 of Budget Paper No. 2 and the measure titled 'Ten Year Enterprise Tax Plan—reducing the company tax rate to 25 per cent'. What is the cost of this measure over the 10-year period?

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

Last night the Treasurer delivered the government's national economic plan for jobs and growth. He delivered our plan to ensure the economy continues to successfully transition from resource investment driven growth to broader drivers of growth and a strong and diversified economy. And our 10-year enterprise tax plan is a key part of that economic plan. It is a key part of making our tax system more growth friendly.

Opposition Senators:

Opposition senators interjecting—

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

I know why the Labor Party is yelling and screaming and interjecting. It is because, unlike the Labor Party, we bring the tax burden down in the economy. The Labor Party wants to increase taxes by $100 billion over the next decade, which is—

Claire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | Link to this | Hansard source

I rise on a point of order of direct relevance, Mr President. The specific question was the cost of the 10-year plan that the minister over there is praising. Could we have his attention drawn to the cost.

Stephen Parry (President) Share this | Link to this | Hansard source

Thank you, Senator Moore. The minister was certainly moving to the question. I call the minister.

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

No wonder the Labor Party made such a mess of the budget. They do not realise that budget forward estimates actually go over a four-year period. Over the four years of the forward estimates, the reduction in the company tax rate, as outlined on page 41 of budget paper 2, has a cost of about $2.7 billion. It is, of course, fully paid for by changes in other parts of the tax system. What we have been able to achieve in this budget is to pay for all of our required increases in spending with spending reductions in other parts of the budget, and we have been able to pay for the cost of—

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

I rise on a point of order of direct relevance, Mr President. I asked one question and one question only: what is the cost of this measure over the 10-year period?

Stephen Parry (President) Share this | Link to this | Hansard source

Thank you, Senator Wong. The minister was addressing some of the cost measures. I call the minister.

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

The Labor Party really does not like tax cuts which help drive stronger growth and more jobs. This is a tax cut which will help attract additional investment, which will help to increase productivity, which will help to create more jobs, which will help to increase the level of job creation, which will help to increase real wages over time. The costing over the forward estimates is $2.7 billion, and over the medium term it is fully funded and reflected in our medium-term forecasts. I know that the Labor Party does not like lower taxes, I know that the Labor Party does not like more jobs and stronger growth; but this is what this government is actually delivering. (Time expired)

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

Mr President, I ask a supplementary question. The Minister for Finance says this measure is fully funded. He cannot even tell us how much it costs, let alone tell us how it is funded. I will ask the same question again. The centrepiece of the budget, according to the government; the 10-year tax plan for a reduction in the company tax rate over the 10 years: how much does it cost?

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

If Senator Wong had actually listened to my answer, she would know I pointed out very clearly that it would be costing $2.7 billion over the forward estimates. It will permanently increase the size of the economy by one per cent, which will help us to generate stronger job creation—more jobs—and over time will help us increase real wages and improve living standards across Australia. This is exactly what the Australian people are looking for. It is a central part of our plan for jobs and growth. It is a central part of—

Claire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | Link to this | Hansard source

Mr President, I again rise on a point of order on direct relevance. What is the cost over 10 years? It is a specific question.

Stephen Parry (President) Share this | Link to this | Hansard source

Thank you, Senator Moore. It is my job to adjudicate as to whether the minister is being directly relevant. I cannot direct the minister how to answer the question. The minister is on topic. The minister is talking about costs in relation to the costs over the forward estimates. I call the minister.

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

The cost of this measure—reflected in the budget paper in the usual way, over the four-year forward estimates period—is $2.7 billion. It is costed, it is fully funded and, indeed, as to the effect of policy decisions on the budget bottom line, it is an improvement of $1.7 billion over the forward estimates.

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

Mr President, I ask a further supplementary question. I ask the Minister for Finance this question: does he even know how much the 10-year company tax cut plan costs? I will again ask the same question. Budget Paper No. 2, the measure entitled 'Ten Year Enterprise Tax Plan—reducing the company tax rate to 25 per cent': what is the cost of this measure over a 10-year period? Do you even know?

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

What I know is that this is a measure which will permanently add one per cent to the size of the economy, will help to increase the number of jobs and help us increase the level of real wages across Australia. This is a measure which is costed, consistent with requirements in the Charter of Budget Honesty, over the four-year forward estimates.

What we do know, of course, is that Labor wants to impose $100 billion in additional taxes over the next decade. You want to spend it all and more.

Opposition Senators:

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order! Pause the clock. Minister—

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

That is, of course, the worst thing that you could possibly do to the Australian economy as we are working on a transition from resource investment driven growth to broader drivers of growth.

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order! Minister—

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

Our plan is to tax better without increasing taxes on the economy. Your plan is to tax—

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Minister Cormann, please resume your seat.

Opposition senators interjecting—

Order! Senators on my left, you have one of your colleagues on his feet. I presume it is to take a point of order.

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

My point of order is on relevance, Mr President. The minister has been asked a direct question three times now: what is the cost of the 10-year enterprise tax plan? Does he know? He has not been able to answer it. Would you please direct him to actually attend to the question that has been asked.

Stephen Parry (President) Share this | Link to this | Hansard source

The minister is answering the question. He is responding to the question and he has been asked two parts to the question.

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

We know that the Labor Party is into 10-year costings to hide their budget black holes over the short term. In an attempt to hide their budget black holes over the short term—we know that the Labor Party has a $20-billion black hole in their costings on the tobacco excise. We have costed this measure consistent with the usual practice and the usual approach under the Charter of Budget Honesty. The cost over the four-year estimate is $2.7 billion— (Time expired)