Scott Buchholz (Wright, Liberal Party) Share this | Hansard source

I am glad that the Minister for Financial Services and Superannuation is in the House to hear these comments. The company tax rate is going to go from 30 per cent to 29 per cent, a one per cent decrease. We have taken a bit of heat over opposing that. I want to share with you why we oppose that. I asked the guys in my office to ring some of the businesses within a couple of kilometres of my office. These are actual figures and I want you to get your head around them. A bloke who has a building supply business has a payroll of $570,000. Last year his taxable income with $40,000. What that means is that he will get a company tax cut of $400 but will potentially be facing a $17,100 increase in his superannuation liability. This government would have you think that they are paying for that superannuation increase. I can assure you that it will be coming out of the pockets of the small businesses and the hardworking mums, dads and families of my electorate of Wright. Then we went around the other corner and found the motor mechanic. He has a payroll of $500,000 and a taxable income of $75,000. What is his benefit? The hand goes into the pocket and he gets his $750, but the potential super liability out of the other pocket is $15,000. Do the maths: over the six-year period that comes to $15,000. You cannot have a three per cent increase and not have it cost anything. It has got to cost something.

Government members interjecting—

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