Lisa Singh (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary to the Shadow Attorney General) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann. Yesterday in question time the minister told the Senate that 'by any measure, inequality has not worsened in recent years'. Wages growth is at the lowest level since the wage price index was first published in 1998. The Governor of the Reserve Bank, Philip Lowe, has described the situation as a 'wage crisis'. Has the minister told Dr Lowe that he is wrong?

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

If you look at all the key data, I stand by the statement I made. Secondly, this government wants to give all Australians the best possible opportunity to get ahead. We want there to be more jobs and better-paid jobs. We want Australians to be the most successful they can possibly be. To achieve that, one of the key things we must do is legislate our Ten Year Enterprise Tax Plan as soon as possible to make sure that our business tax rates are internationally competitive. What will happen, if we put ourselves in a better position to compete for additional investment and capital into Australia as a result of a more competitive business tax rate, is that we will attract more investment, which will improve productivity, generate more jobs and lead to higher wages.

In the end, if we want every individual Australian to have the best possible opportunity to be successful, and we do, then we need the businesses that employ them to be the most successful and the most profitable they can be. More successful and more profitable businesses will be able to hire more Australians and pay them better wages. That is the simple truth that senators on this side of the chamber understand but the senators on that side of the chamber fail to understand. If you want to impose more burdens on business, making it harder for them to be successful, as Mr Shorten wants to do, you will cause less investment, fewer jobs, less opportunity and lower wages. The Labor Party's prescription for the economy will lead to less opportunity, less investment, fewer jobs and lower wages. The historical failure of socialism is there for all to see. Everybody knows that socialism leads to missed opportunity, fewer jobs and lower wages. (Time expired)

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

Senator Singh, a supplementary question?

Lisa Singh (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary to the Shadow Attorney General) Share this | Link to this | Hansard source

When asked whether inequality was rising or getting better in Australia, Dr Lowe said, 'Well, it's risen.' Does the minister still think that Dr Lowe is wrong?

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

The good senator is quoting the Reserve Bank Governor out of context. What I've said is that in recent years, if you consider all of the relevant data, inequality has not markedly risen in Australia.

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

Senator Singh, a final supplementary question?

Lisa Singh (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary to the Shadow Attorney General) Share this | Link to this | Hansard source

While wages growth is at the lowest levels on record, the minister says inequality has not worsened, the Treasurer says, 'inequality—it's actually gotten better', and the government supports a pay cut for up to 700,000 Australians. Should Australians struggling on low wages just accept that the Turnbull government doesn't care about them?

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

The Turnbull government cares very much about the opportunity for all Australians to be the most successful they can be and to have the best possible living standards that they possibly can. But let me tell you: the Shorten prescription, when it comes to economic policy, would lead to worse outcomes for people across Australia. It would lead to less opportunity. It would lead to fewer jobs and lower wages. The evidence is there.

I thought that the argument between the free market, with an appropriate social safety net, on one side and socialism on the other had long been won, but clearly Bill Shorten believes that the Australian people have forgotten the historical failure of socialism. He believes that people have forgotten that imposing more and more burdens on business will actually lead to worse outcomes for people across Australia. It will lead to mediocre outcomes. If you make it harder for successful people to be successful, there will be less success and it will be bad for everyone. (Time expired)