Anthony Chisholm (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Cormann. Over the last two years, wages have grown by only four per cent while company profits have increased by a massive 32 per cent. This morning, the finance minister twice refused to endorse the Prime Minister's claim that a $65 billion big-business tax cut will increase wages. I give the minister another opportunity. Will the minister echo the Prime Minister and guarantee an increase in real wage growth as a result of its $65 billion handout to big business?

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

Labor actually has this completely wrong. If anyone in Australia has made the case day in, day out for two years now that a more competitive business tax rate will help drive more investment, create more jobs and drive stronger wages growth, it's me. Of course a lower company tax rate will drive additional investment, help us create more jobs and lead to stronger wages growth. At no time has anybody made that case more passionately and more energetically than me, including this morning. So you are completely and utterly misrepresenting the position that I've put. The Labor Party is just trying to create a distraction. The Labor Party has decided today to 100 per cent endorse the first three years of our Ten Year Enterprise Tax Plan. After having fought tooth and nail to stop us from lowering the business tax rate for businesses with a turnover of up to $50 million, you have now rolled over and accepted that that is good policy. Why is it good policy? It is because, if you leave businesses with more of their own money, they are able to invest more in their future growth and expansion, which means that they can hire more people. As they hire more people and there is more competition for workers, there will be stronger wages growth. That is economics 101. That is fundamental economic orthodoxy. The reason we are concerned about your position is that, if you make it harder for business to be successful, if you put business in Australia at a disadvantage compared to business in other parts of the world, there will be less investment, fewer jobs and lower wages, whereas we want more investment, more jobs and higher wages, and that is what our business tax cuts will deliver.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Chisholm, a supplementary question.

Anthony Chisholm (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Given companies are already seeing massive profits, while workers are suffering under record low wage growth, what rate of wage growth will the government guarantee as a result of its proposed $65 billion handout to big business?

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

I know that the Labor Party these days is into the Soviet-style planned economy, where you centrally prescribe everything in the economy, but let me tell you: that is not the way we work. We want to give business the best possible opportunity to be successful so they can hire more Australians and pay them better wages. And guess what: our plan is actually working. More than 420,000 new jobs were created in the last 12 months. And guess what: wages growth is picking up, as you would expect. Yes, there's been a period of lower global growth, there's been a period of massive transition—

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Cormann, please resume your seat. Senator McAllister, on a point of order?

Jenny McAllister (NSW, Australian Labor Party) Share this | Link to this | Hansard source

The point of order goes to relevance. The minister was asked very directly around the rate of wage increase that would be guaranteed by the coalition, and he is refusing to answer.

Scott Ryan (President) Share this | Link to this | Hansard source

I think the minister is relevant. The minister can't be instructed how to answer the question, as long as he is directly relevant to parts or all of the question asked. I call the minister.

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

I'm happy to confirm for Senator McAllister that, on the coalition side, we don't subscribe to the socialist planned economy model, where the government centrally prescribes what the wages in the economy should be. We happen to believe, if you help business be more successful, they'll hire more people and they'll have to pay them more in wages because there is more competition for workers. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Chisholm, a final supplementary question.

Anthony Chisholm (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Given the minister refuses to guarantee the government's $65 billion handout to big business will result in an increase in real wage growth, why should working Australians believe the Turnbull government's empty rhetoric, when clearly not even his own minister does?

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

I would advise the honourable senator not to just accept all questions from the tactics committee, and then perhaps, if he is given questions by the tactics committee, to actually listen to the answer, because that question completely ignores everything that I've said so far.

Firstly, $30 billion out of that $65 billion you are backing in. That's No. 1. Let me tell you something else. For you to claim a $65 billion tax giveaway to big business, you must think that 100 per cent of all businesses in Australia are big businesses. Do we think that 100 per cent of all businesses are big?

Government senators: No!

No, they're not. Do we want all businesses in Australia to aspire to become a big business?

Government senators interjecting—

Scott Ryan (President) Share this | Link to this | Hansard source

Order on my right!

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

Yes, we do. We want every small business to become a bigger business and we want—

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Cormann, please resume your seat. Senator Collins, on a point of order.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

Mr President, the point of order is relevance. The minister has been asked now three times, 'What rate of growth?' and he refuses to answer.

Scott Ryan (President) Share this | Link to this | Hansard source

The minister is being directly relevant to the question as asked. Senator Cormann.

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

I mean really—all hope is lost for the modern-day Labor Party. When they don't understand when I say that we are not centrally prescribing— (Time expired)