Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer to reports of a leaked survey of big businesses in Australia, which confirms that more than 80 per cent of big businesses surveyed have ruled out increasing wages or employing more staff in response to the Prime Minister's $65 billion big business tax cut. With wages growth at record lows under this Prime Minister, why won't the Prime Minister admit that his $65 billion business tax cut is for the benefit of big business and not for workers?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I will ask the Treasurer to add to this answer. This is a question from a man who wrote a book calling for company tax to be 25 per cent precisely in order to make Australian businesses more competitive with the rest of the world, and on the basis that it would result in more investment, higher wages and more jobs. Those are precisely the same arguments that the member for Maribyrnong made when he was in government, standing right here, and precisely the arguments that Paul Keating made when he was Treasurer. Now, suddenly, for political convenience, all of that economic logic evaporates. The Labor Party cannot suspend the laws of economics. Their latest policy on company tax is no more well calibrated than their shocking cash grab on pensioners. I will ask the Treasurer to add to the answer.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I'm glad that the shadow Treasurer is doing some research. He may be interested in this research by the Centre for Independent Studies, which surveyed 640 businesses in 2016. It found that—this was in relation to tax cuts for business—53 per cent of businesses said more investment is their first, second and third most likely response to a company tax cut; 43 per cent of businesses said they were likely to increase wages; and 45 per cent of businesses said they were likely to hire new staff as their first, second, or third highest priority.

Reducing the tax burden on businesses means they are in a better position to pay workers more. The only people who are standing between a wage increase and workers is the Labor Party. The Labor Party think that if employers have to pay the government more they'll be in a better position to pay workers more. It doesn't work like that. If we allow businesses more room to invest and grow their businesses they will be able to pay their workers more, and the Labor Party used to believe that. They used to believe that. The shadow Treasurer, as the Prime Minister reminded us, used to write books about it. This is a shadow Treasurer who has walked away from every economic principle he has ever believed in. In the same way, just two weeks ago, he walked away from a policy that was well calibrated and properly designed. This shadow Treasurer is not up to shadow Treasurer 1.0. or 2.0; he's up to about 17.0. The number of changes in the positions that he has had has rendered him an absolute economic incompetent incapable of doing his job.