Luke Howarth (Petrie, Liberal Party) Share this | Hansard source

I rise in support of the Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018. Before the member for Melbourne walks out of the chamber: he conveniently left out the 'medium businesses' part of the bill. I support it wholeheartedly because I myself and the government that I'm part of believe in lower taxes. Lower taxes are essential to ensuring that Australians get ahead. Lower taxes are essential to ensure that, in our egalitarian society, everyone continues to profit. We've seen that, to date, by the results of the company tax cuts that the government have already legislated. We've already legislated company tax reductions for small and medium businesses—small businesses up to $10 million, medium businesses up to $50 million. It was a plan we took to the last election and what do the results show? In the last 12 months, some 430,000 jobs were created. Where? In businesses up to $50 million. That's where the jobs are being created. The evidence is there.

I remember clearly in the other place, the senators from the Nick Xenophon Team or Central Alliance—whatever they're called—saying, 'Where's the evidence?' The evidence is on the table now. In the last 12 months, from when those company tax cuts were passed, all the jobs have been created there. Do you know what? The Labor Party voted against lower taxes. The Greens voted against lower taxes. No surprise there with the Greens, but yet another backflip from the Labor Party. It was just a few weeks ago that the Labor Party wanted to put small business taxes—small businesses up to $10 million—back up to 30 per cent. They're currently at 27½ per cent and those opposite—the Leader of the Opposition, Mr Shorten, and the Labor Party—wanted to put taxes back up to 30 per cent when we have evidence that in the last 12 months all the jobs have been created in those businesses up to $50 million. Open your eyes, those opposite.

If those opposite are going to support the bill now, then I say, 'Well done, congratulations; that's good.' Those extra jobs created in the last 12 months help provide essential services. As we create more jobs, the government receives more income tax. More income tax means higher school funding—the $24 billion plus that we've increased in the last few years on top of current funding. It means more funding for health care. When the Minister for Health gets up in question time and talks about all the drugs we're listing on the PBS, we're able to do that because of increased jobs and extra people employed mainly, in the last 12 months, in those small and medium businesses. We're able to increase funding for the environment whether it's on the Great Barrier Reef or for a small project like I've just implemented on Moreton Island with a cane toad sniffer dog to keep Moreton Island, in South-East Queensland, free of cane toads.

We've also been able to increase funding for the Australian Defence Force. As a former SAS commander, you would know about that, Mr Deputy Speaker. This is in stark contrast to what those opposite and particularly the member for Melbourne just spoke about. His vision for the country is higher taxes right across the board, when already we see those that earn the most in this country pay by far the most tax. What does concern me most is that we see a little bit of support here from the Labor Party where they're going to support this bill, which is good. But what they don't tell you is their plan, should they win the next election, which is not just higher company taxes across the board but higher income tax.

Do you know that we have legislated that everyone in this country who earns $180,000 or $150,000 or $130,000 or $80,000 pay no more than a third of what they earn in tax? It is very simple. If you earn $200,000, you'll be paying roughly $66,000 in tax. But if you earn $50,000 you'll be paying roughly $15,000, or probably even less, with the first $18,000 tax-free. Those opposite want to whack it up to 45 per cent. For everyone who earns over $180,000, it would be 45 per cent plus the Medicare levy, plus a high-income levy. You'll be looking at 49 per cent under Labor compared to 32½ under us, or 34½ per cent with the Medicare levy. Labor want to whack up for everyone in this building who earns over $90,000 or for everyone in my electorate who earns over $90,000 back up to 39 cents with the Medicare levy. That is what Labor stands for—higher company tax, higher income tax, higher housing tax. For people in my electorate who are renting, their rents will go up. If they cannot negatively gear, investors will have to positively gear, which means rents will go up.

They can't have it both ways. They can't make all those big savings and then talk to people in my electorate and say their rents won't go up, because they will. If people own an investment company and they, for whatever reason, keep rents low, they may think, 'If I make a profit, that's good. If I lose a little bit, I can negatively gear. Interest rates are low.' But if interest rates go up and they're not allowed to negatively gear, they'll have to positively gear, which means people who rent in my electorate, in Deception Bay, Kippa-Ring, Fitzgibbon and Clontarf, where I live, will have their rents go up under a federal Labor government. Let's not muck around on this; that's what they're going to do—not to mention capital gains tax. If someone in Newport, Margate, Aspley or Bracken Ridge wants to make a few dollars, they'll take another 25 per cent. That's the Labor Party.

Then there's the retirees tax. If you've worked hard and you've got a few shares, these guys will tax you more. And if you have a self-managed super fund anywhere and you live in Australia, you will effectively be taxed at 30 per cent. If you invest in Australian companies like Fortescue Metals or something, you will pay 30 per cent tax. It used to be taxed at 15 per cent in your super fund and you would get a 15 per cent return. They will keep it. Thirty per cent tax for you and your self-managed super fund. But if you're in an industry fund, that's cool—no worries. That's where their $200 billion in new taxes is coming from—$20 billion a year. So, Labor Party, don't come in here and tell me you're here for small businesses. Your policies will drive down investment and will see less work and higher taxes.

I support the small and medium business tax cut. If the Senate doesn't want to pass it for big business—banks and all of those—fine; take it off the table. But there are literally thousands of smaller businesses. In the member for Brisbane's electorate, 31,775 businesses will benefit from what we're doing now, which will mean more jobs and then more income tax to fund essential services. In the electorate of my friend the member for Bowman, there are 14,827. Going to Western Australia and the electorate of Canning—Deputy Speaker Hastie's electorate—11½ thousand businesses will benefit from this. In the electorate of Longman, just north of my electorate, at Bribie Island, Caboolture, Wamuran and Ocean View, some 12,201 little businesses will benefit. These aren't global corporations, as the Greens member says. These are family businesses: plumbers, bakeries, barber shops, bull bar manufacturers and small chemical companies. There are businesses all around my electorate as well—some 12,000. There are seven million Australians employed in these small and medium businesses that we're reducing tax for now. This is a good bill. I encourage all members to support it.

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