Senator REYNOLDS (Western Australia) (15:08): I, too, rise to comment on the motion to take note. Last night I could not have been prouder, being a Liberal member of this government. What the passage of the bill last night demonstrated was that responsible government still is possible. That is, if you want to spend money you have to find the money somewhere. We see those qualities again in the government’s enterprise tax bill.

What are the values that underpin the legislation that was carried last night and also the one under debate? The first thing is that those on this side understand the principle of fiscal responsibility on behalf of the taxpayer. Secondly, we also understand that our responsibility is to ensure that every taxpayer’s dollar is spent on government programs and is best targeted to those who need it the most. Thirdly, on this side we believe that we have to ensure any government programs—whether it is support welfare or any other government expenditure, including revenue measures for companies—are regularly reviewed to ensure that they are still relevant and still deliver the purpose for which they were originally implemented. As parliamentarians on this side of the chamber, we know that it is our duty to deliver on all three of those for the Australian people.

We must live within our means. As every Australian family knows, you have to prioritise and you have to take tough decisions. The one last night was one such tough decision, but it was an important decision, as is the tax rate for companies. As those on the other side seem to have forgotten—or they really do not care—if you want to spend money, whether you are a company or, in this case, a government, you have three options. If you want to spend new money, either you have to earn it, which in the case of us is done by raising taxes; you have to make savings in your budget elsewhere; or you have to borrow the money, knowing that you will have to pay it back with interest.

The same tough decisions have to be made for corporate tax. It is so important that Australia now considers how we reduce the burdens of corporate tax on our companies. Ultimately, it means jobs and more money to the federal government that we still want to keep delivering on behalf of the Australian people. The enterprise tax plan benefits employees because businesses paying less tax frees up more money to pay employees more and give them more hours of work. Also, what it does is make our companies much more competitive with international companies. We are seeing that most of our major competitors overseas, if they have not done already, are in the process of reducing their corporate tax. Not only is that a disincentive for new businesses to come to Australia but it also puts us at a further disadvantage for exporting our goods and services to the rest of the world. Whilst we support sustainability in social services, high health and education spending and a bigger welfare budget, it will not help hardworking Australians to pick up extra work and pay.

Labor is demanding that small and medium businesses pay nearly $5 billion more in tax, but have again refused to support how that is going to be paid. In this case, it is more than $6 billion savings to our welfare system to get our budget back into balance. Labor wants Australians to pay more tax to support a larger welfare system. But it is much worse than that. Again, we heard in the debate last night Labor moralising as if they were the only ones in this chamber who actually care about the Australian people. Of course we do. But those opposite kept saying, ‘Yes, we’ve got to find savings, but these are not the right savings.’ I listened very carefully to the debate last night and guess what? Not a single member opposite suggested where else the money could come from. It was like something out of Norman Lindsay’s The Magic Pudding. Somehow, from somewhere, this extra money is going to be found for all these new expenditures.

It is different for government, who actually raise money and spend money on behalf of the Australian people and Australian taxpayers. Mums and dads who take out a loan to pay for whatever it is they want have to pay back the interest and the principle, but they have to have some collateral. What is the Australian people’s collateral for those opposite to keep suggesting more and more expenditure without having the corresponding savings? It is your children who are going to have to pay back the debt— (Time expired)