Kimberley Kitching (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Cormann. Can the minister confirm that, not satisfied with giving investment bankers a $7,000-a-year tax cut, the Turnbull government now wants to give the banks they work for a $17-billion tax cut?

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

What we want to do is give Australians, today and into the future, the best possible opportunity to get ahead. On this side of the chamber, we understand that jobs don't grow on trees. We understand that jobs are created by viable, profitable businesses and if we make decisions in this parliament to put businesses in Australia at an ongoing, deliberate, structural competitive disadvantage compared to businesses in other parts of the world where business tax rates are much lower then we put workers here in Australia at a competitive disadvantage because, in the end, nine out of 10 working Australians work for private-sector businesses. Their future job opportunities, their future job security, their future career prospects, their future wage increases depend on the future viability and the future profitability of the businesses that employ them and pay their wages.

I know that Mr Shorten and the Labor Party, which used to support the proposition—

Senator O'Neill interjecting—

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

Order, Senator O'Neill.

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

that it's important for Australia to be globally competitive have made a decision to sell out the interests of workers across Australia.

Senator O'Neill interjecting—

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

Order, Senator O'Neill.

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

The Labor Party has decided to help businesses around the world to take business and investment away from Australia. The Labor Party has made a decision to help businesses overseas lock in their competitive advantage as a result of the decisions in those countries to lower their business tax rates. Do you know what? We are a relatively small domestic market with a relatively small domestic capital market. We compete for capital and for access to markets around the world with businesses around the world. If we make it harder for business in Australia to be successful, we make it harder for Australians to be successful. If we make it harder for the businesses that employ millions and millions of Australian workers—

Senator O'Neill interjecting—

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

Order, Senator O'Neill.

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

to compete with businesses in other parts of the world, then we're making it harder for Australian workers to be successful. The truth is that having one of highest business tax rates in the world here in Australia will damage our economy, cost jobs and be bad for working families around Australia.

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

Before I call you, Senator Kitching, I'm going to remind senators on both sides of the chamber that I'm going to be particularly insistent on being able to hear the questions asked so that I may rule on subsequent points of order if they are raised. Senator Kitching, a supplementary question?

Kimberley Kitching (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Last week, the Turnbull government sided with One Nation to oppose Labor's plan to double income tax cuts for low- and middle-income earners. Why can the Turnbull government find $7,000 a year for investment bankers and $17 billion for the big banks but not find an extra $400 a year for an aged-care worker earning $40,000 a year?

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

The necessary funding for the important social, health and other services that Australians rely on is reliant on a strong economy. If we continue to make it harder for Australian workers to be successful, if we continue to make it harder for Australian businesses to be successful, our economy will be weaker and will be in a weaker position to pay for the essential services Australians rely on.

Deborah O'Neill (NSW, Australian Labor Party, Shadow Assistant Minister for Innovation) Share this | Link to this | Hansard source

You're not answering the question.

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

I'm precisely answering the question. Of course, the Labor Party can't accept that the Australian Senate made a decision last week. Last week, the Australian Senate decided to provide income tax relief to all working families around Australia, prioritising low- to middle-income earners in the first instance, but, yes, providing income tax relief to all working families around Australia to ensure that they've got the right incentive, the right encouragement and the right reward for effort, because that is good for the economy as a whole. (Time expired)

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

Senator Kitching, a final supplementary question.

Kimberley Kitching (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Senator Cormann, isn't it clear that the Turnbull government is always going to choose investment bankers and big banks over low- and middle-income workers?

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

No, that is not correct. I reject that absolutely and unequivocally. Everything we do is to ensure that all Australians and, in particular, low- and middle-income earners, have the best possible opportunity to get ahead. Those people who get hurt the most by lower growth, by weaker growth, are low-income earners—those wanting to get into the jobs market, those wanting to work additional hours, those wanting to move from part-time to full-time. It is well established and Labor is clearly not interested in the evidence. If the economy grows more strongly, it proportionally benefits low-income earners more than anybody else. We want all Australians to have the best possible opportunity to get ahead, and having a stronger economy, having more jobs created into the future, is a very important part of that. And do you know what? When you create more jobs, it actually improves the bargaining power of workers, because if you create more jobs they get higher wages, because if there's less— (Time expired)