Scott Morrison (Cook, Liberal Party, Prime Minister) Share this | Hansard source

There are more people in work today than there were before the pandemic hit. This country has gone through the worst economic crisis we have seen since the Great Depression, but, unlike so many other countries around the world, Australia stands alone among so many advanced economies in being able to demonstrate the resurgence of our economy and of our labour market in particular as more and more Australians get back into work. It's not by accident, because we know that as more and more people get back into work then that creates tightness in the labour market, which ultimately ensures that wages can grow again.

It's not the only reason why wages will grow. When you encourage businesses to invest in productivity, when you encourage them through the instant asset write-off and when you encourage them with the multitude of tax incentives to invest in research and development, to invest in their manufacturing capabilities, as we are through the Modern Manufacturing Initiative, what that has shown in work that has been done by Ascentia, is that the tax rate on new investment in Australia today is not 30 per cent and it's not 25 per cent—it's 21 per cent. What that means is Australian businesses are investing in the plant and equipment which lifts the productivity of their workers, and it means that they can earn more.

It goes beyond that, because they won't just benefit from a growing economy and their own employees investing in their businesses so that they can earn more; they can keep more of what they earn under a Liberal-National government, because we've seen the cat belled down in Victoria—what's the first thing the Labor government wanted to do in Victoria? Increase taxes at the first opportunity. That's the Labor way. The coalition's way is to lower taxes, to keep taxes low so Australian businesses can invest, so Australians can keep more of what they earn, so they can save for their first home. We've got first-home ownership at the highest level in 11 years because we're allowing Australians to get ahead. We believe that if they have a go they'll get a go, and under our policies they are getting a go. The businesses who employ them are getting that go. What they'll get from those opposite, as we know, as is their form, is higher taxes, higher taxes and higher taxes.

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