David Coleman (Banks, Liberal Party) Share this | Hansard source

On this side of the parliament we focus on growing the economy. That's what this government does every single day. It focuses on measures to grow the economy. What they focus on opposite is how to tax the economy. If you look at every single policy of those opposite, whether it is in capital gains, negative gearing or small business, it is all about increased taxation. History is very clear that, when you increase tax, you reduce activity. You do not grow economies by increasing tax.

It is extraordinary that those opposite have a plan to take money from the economy. They have a plan to spend the money of Australians but they do not have a plan to help Australians actually make money. That is so fundamental because, if the economy isn't generating money, there isn't money to tax. There isn't money to redistribute, so to speak, and that is why growing the economy is so fundamental.

It is encouraging that today's NAB business conditions index is the strongest since 2008. NAB has been running this survey since 2008, and the result out today shows that business conditions are the strongest they have been since 2008. Business confidence is double the long-run average. So there are very strong conditions for business under this government and a strong sense of confidence and optimism in the business sector. That is a very good thing because that means investment and that means job creation.

Another reason why business confidence is so high is the support the government is providing for small and medium-sized businesses through tax relief. Earlier this year we were successful in passing tax relief for businesses with a turnover of between $2 million and $50 million. The Labor Party opposed that. They opposed tax reductions for businesses with, say, $2.1 million in revenue. They are opposed to tax cuts for 'evil multinational corporations', if I can paraphrase them. But the vast majority of businesses receiving tax cuts under this law are actually small or medium sized, including businesses with revenue of as little as one dollar above $2 million. That business may be making a profit margin of five per cent, or about $100,000, which is not much more than the average household income. Those opposite say they should not be entitled to that tax relief.

That is an extraordinary and ridiculous position for those opposite to take. But they take a number of ridiculous positions when it comes to tax. One of my favourite examples of the absurdity of their tax policy is in relation to capital gains tax. They put out a press release on housing affordability. It lists a number of steps that those opposite propose to take. One of those steps is to increase capital gains tax by 50 per cent on everything. If the policy is about housing affordability, it would be logical to apply that change to the housing market. But those opposite say they would increase capital gains tax by 50 per cent on farms, factories, cafes, restaurants—basically, anything—under the headline of housing affordability.

My question to those opposite is: how does increasing tax on an investment in a factory in Mudgee address housing affordability issues? It is very quiet over there on the opposition side. I would welcome an interjection from the member for Rankin, the architect of those four famous budget surpluses, who holds himself out as a great intellectual on economic policy. Explain how increasing capital gains tax by 50 per cent on things that have nothing to do with housing has anything to do with the housing market. It is about increasing tax. They want to tax Australians more because they want to spend more and take more for the government from the people of Australia. That is fundamentally the wrong policy. It has nothing to do with growing the economy. It is on the wrong side of history. It will be rejected by the Australian people. (Time expired)

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