Senator BRANDIS (2:59 PM) —My question is to the Minister for Revenue and Assistant Treasurer, Senator Coonan. Will the minister inform the Senate on how the Howard government's commitment to reforming business taxation will deliver benefits to all Australians. Is the minister aware of any alternative policy approaches?

Senator COONAN (Minister for Revenue and Assistant Treasurer) —I thank Senator Brandis for his ongoing interest in the economic future of this country and particularly in reform of the tax system. The Howard government recognises that business and industry are the backbone of the Australian economy and provide for the wealth and employment of all Australians and, of course, also provide revenue for services in vital areas such as health and education. The government's current economic success story is the result of sustained reforms, including reform of the tax system. The centrepiece of the government's business tax reforms has been a reduction in the company tax rate from 36 per cent to an internationally competitive 30 per cent. The new consolidation regime, demergers, tax relief and simplified imputation rules will reduce tax compliance and facilitate the commercial restructure of businesses. Venture capital reforms are already encouraging more foreign investment and expertise in Australian business and this, of course, will mean more Australian jobs. Small business needs have been addressed through the simplified tax system. Recent business surveys are positive about the current economic conditions and Australia's economic outlook. The latest NAB monthly business survey, dated 9 September, reported that business conditions, after rising significantly in July, strengthened further in August to their strongest level since the December quarter in 1994. This is great news.

I am asked about alternative policies. On the one hand, the Labor Party has reached, unfortunately, new heights in business bashing. The Labor Party opposes the government's widely supported reforms to international tax, which would make it easier for Australian businesses to compete internationally and for multinational companies to set up and provide jobs in Australia. It intends to put up taxes on mining by cutting the diesel fuel rebate by 10 per cent. Employment in the mining industry accounts for 83,000 jobs nationwide. Labor's tax slug will make some mining operations unsustainable and will cause closures and job losses. How clever is that? Labor's economic promises would ruin Australia. There is no clearer evidence for that than the member for Werriwa's erratic pronouncements on tax reform. He has supported a progressive economic tax. He has supported state income taxes. He has supported differential GSTs, depending on what area you live in or what state you live in. He has supported capital gains tax on the family home. And for 12 hours, I think, he supported the abolition of negative gearing. But, whatever he settles on, we have no doubt that it will be to put up taxes—to increase the lead in the saddlebags of Australian businesses. Labor is desperately trying to establish some economic credentials, but choosing a spokesperson who is anti business and who does not have the first clue about what business needs from the tax system is a recipe for fiscal rigor mortis. The Howard government, on the other hand, will stand up for Australian workers and their families. The government will continue to support business and the creation of new jobs.

Senator Hill —Mr President, I ask that further questions be placed on the Notice Paper.