Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I completely reject the premise of the question. The Prime Minister and I are completely of one mind. Making our business tax rate more globally competitive in Australia will lead to additional investment and more jobs, and, as competition for workers increases across Australia, wages will grow more strongly. That is economic orthodoxy. This is as certain as Monday follows Sunday. I know that is not necessarily the view of the Left of the Labor Party, but that used to be the view of the Right of the Labor Party; indeed it used to be the view of Bill Shorten himself, who made the point:

Cutting the company income tax rate increases domestic productivity and domestic investment. More capital means higher productivity and economic growth and leads to more jobs and higher wages.

That is a position that the government supports 100 per cent. He also said:

… lowering the corporate rate for smaller businesses only [as the Greens propose] creates an artificial incentive for Australian businesses to downsize.

In worse case scenarios some businesses might actually lay people off to get smaller—and the size based different tax treatment would create a glass ceiling on business workforce growth.

Instead we want a level playing field regardless of the size of the company.

If we maintain the business tax rate in Australia at 30 per cent for all businesses with a turnover of more than $50 million, we will put them at a continuous competitive disadvantage.

Australian businesses compete with businesses from around the world. If we force them to pay higher taxes here than they have to pay in other parts of the world, we will lose investment and jobs to overseas. It will impact on the job opportunities, the job security and the career opportunities of Australian working families today and our children and grandchildren tomorrow. Australia is an open trading economy. We are exposed to global competition. In particular, our big businesses are on the frontline of global competition. If we continue to put them at a disadvantage, we will lose investment and jobs, and wages will actually drop if we're not careful. (Time expired)