Ross Vasta (Bonner, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister update the House on how the government's actions to keep taxes low are working to keep our economy strong? What are the risks and what is at stake by adopting an alternative approach?

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

I thank the member for Bonner, who I have stood with on numerous occasions where we've stood together and stood up for small and family businesses in his electorate, as I have with members right across this chamber on our side of the House.

We believe that small and family businesses are the backbone of our economy. That's what we believe. And that's why we have acted to reduce the taxes of small and medium- and family-sized businesses right across the country. It is true that, on every occasion we have sought to do that, the Labor Party have opposed us. When we said that we wanted to broaden the definition of a small business from $2 million to $10 million, the Labor Party opposed us. When we said we wanted businesses of less than $10 million and more than $2 million to have access to the instant asset write-off, other small business tax concessions and pooled depreciation, the Labor Party opposed us. In fact, they even opposed the Henry report, under their own government, which said they should have lifted it to $5 million. The Labor Party opposed it.

When we said we wanted to have taxes fall to 27½ cents in the dollar for all businesses up to $50 million, the Labor Party opposed us. When we said we wanted all businesses under $50 million to have their taxes go down to 25 cents in the dollar, the Labor Party opposed us. On every single occasion we have sought to do this, they have opposed us because they do not believe that small and family businesses are the backbone of our nation's economy. They may be shamed and embarrassed and dragged kicking and screaming to now supporting the bill that was introduced by the Treasurer today to fast-track those tax cuts for small and family businesses to 25 cents in the dollar, but I know this: they're still going to hit small and family businesses with higher taxes. That's what they'll do. They've got $200 billion and more in higher taxes. There's $70 billion and more in higher personal income taxes. What they don't seem to understand is: if you're an unincorporated business, you pay off the personal income tax rate, and they're putting that up for small and unincorporated family businesses.

Mr Pasin interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Barker!

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

There's $25 billion in higher taxes on their family trust package—

Mr Pasin interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Barker is warned!

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

which is hitting family businesses. There's almost $46 billion in higher taxes to remove the dividend imputation credits that are used by small businesses during times of weak cash flow and low profitability, and they invest in those shares to support their businesses—that's another $5 billion a year going on the back of Australians accessing those credits. They're increasing the taxes on small businesses' and family businesses' superannuation contributions. They're increasing their taxes on housing. (Time expired)