Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Hansard source

I am asked about jobs, Mr Speaker. Consequently I am responding to the important policies that the government has to support businesses, to support economic growth and to support jobs. The OECD says that, in terms of major tax bases, company income tax has the largest adverse effect on economic growth. If you are against cutting company tax, you are against economic growth. If you are against economic growth, then you are against jobs. And, if you are against economic growth and jobs, then you are also against increasing wages—those increasing wages which come with the benefits of economic growth.

The KPMG modelling that was done at the time of the Henry tax review indicated that real wages would be around half a percentage point higher than otherwise in the long run with a one per cent company tax cut.

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