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

Those opposite have failed continually on the economy and they have failed continually when they were in government. If they ever return to the Treasury benches their plans for the economy will smash it again. These are the people who took a position of having $50 billion in the bank and turned it into $200 billion of debt—that is quite a feat. One in 10 manufacturing jobs were lost under their appalling economic stewardship and we saw a loss of confidence in the Australian economy, without precedent. So we were in an extraordinarily bad situation under the previous Labor government.

Let's look at some of the proposals that they have before us. It is good to see the member for Fenner here, because he might be able to illuminate how this one works, because we all know he is a very thoughtful fellow and an author of some repute. I would really appreciate an interjection on this topic. One of the tremendously bad tax policies that those opposite have is to increase capital gains tax on everything by 50 per cent. You ask: what is the theme of that policy? Would you say that that is a business tax increase theme. But they describe it as a housing affordability policy. If it is a housing affordability policy you would think it would be related to housing. But if you look into their policy—and I am really looking for the member for Fenner to illuminate why this is the case—it applies to farms, to factories in regional towns, and to any investment to which capital gains tax currently applies, but you will be required to pay 50 per cent more tax. It would be tremendous to see a personal explanation from the member for Fenner on this extraordinarily complicated thing that is hard for people to understand, to explain how it helps housing affordability to increase tax by 50 per cent on someone who invests in a farm in rural Queensland. How does that work? I am not hearing any response on this. I would really appreciate it, because I am genuinely confused on this topic.

The other good one is that they think a big business is one that has $2.1 million in revenue. Do you know what I think? I think that they think revenue and profit are the same thing. I think they think that if you have $2.1 million in revenue that means you are making $2.1 million. Do you know what? It doesn't actually mean that. In fact, many small businesses in Australia have very small operating profit margins—it might be five per cent. Five per cent is very standard. So let's imagine you are turning over $2.1 million and you are making five per cent on turnover. Do you know what you are making? About $100,000, which is not much more than the average full-time wage. Those opposite say that that is a big evil corporation that should not be provided with any tax relief. That is just an extraordinary proposal—that a business making $100,000 profit is a big business that should not be provided with any tax relief. It is quite extraordinary.

My other favourite is the superannuation policy they took to the last election. This was the secret economic policy. They said: we are going to save exactly the same amount as the government—and this is a hard one because it has already happened, so it is hard for the member for Fenner to help us on this—but we are not going to tell you how. We are not going to tell you what our superannuation policy is. We know exactly how much it will save but we do not actually know what it is. That again is kind of a novel approach to policy making.

Ninety per cent of Australians work in the private sector. Hardly anyone opposite has ever had a full-time job in the private sector. That is a reality.

Ms Madeleine King interjecting—Oh, come on!

No, we can do the numbers. I would be very happy to go through it. A very small proportion of those opposite have had full-time jobs in the private sector, and that is an extremely big problem for people who would purport to say that they can run the economy.

Under this government we have the fastest economic growth in the G7—2.4 per cent. We have economic problems internationally but strong economic performance in Australia. We have taken on this extraordinary burden of debt that those opposite left us, with $24 billion of budget repair. Importantly, we have delivered income tax cuts for hardworking Australians on average incomes. They think a small business earning $100,000 is a big evil corporation. We think that that is the sort of organisation that should be absolutely supported. We are about growing the economy. Those opposite do not understand how to grow the economy. Their record is appalling and it is so important that they are not given the opportunity to implement their terrible policies.

Debate adjourned.

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