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Tuesday, 13 September 2011
Page: 5890

Mining

Senator URQUHART (Tasmania) (14:35): My question is to the Minister for Small Business, Senator Sherry. Can the minister describe to the Senate how the government's tax package will build a stronger economy and a fairer, simpler tax system? What role will the minerals resource rent tax play in delivering the benefits of the mining boom to all Australians?

Senator SHERRY (Tasmania—Minister Assisting on Deregulation and Public Sector Superannuation, Minister for Small Business and Minister Assisting the Minister for Tourism) (14:35): I thank my Tasmanian colleague Senator Urquhart for the question. This Labor government intends to introduce and implement a mining tax, and we are proud of it. We are proud of introducing a mining tax, unlike the Liberal-National Party, who have pledged not just to oppose the mining tax but to reverse it if they should ever be elected to office.

Not one dollar of the mining tax goes to the budget bottom line. The mining tax revenue will be used to fund major tax reform in this country for business and for individual taxpayers, and to increase retirement incomes. We will be reducing the company income tax rate to 29 per cent in 2012-13—a year ahead for small business. We will be introducing special new accelerated depreciation provisions funded by the mining tax for small business—currently a $1,000 write-off, to increase to $6,500. We will be introducing a standard tax deduction of $500 in the first year and $1,000 subsequently to simplify the tax claims and tax affairs of over six million Australians. We will be cutting tax on savings through a 50 per cent discount on up to $1,000 of interest income. They are some of the tax reforms that will be funded by the mining tax which the Liberal and National parties oppose. The Liberal and National parties say they will reverse the mining tax. How are they going to fund cuts to company tax? How are they going to fund cuts to superannuation tax? How are they going to fund improved write-offs for small business? There are billions and billions of dollars of new measures—cuts to tax on superannuation, cuts to tax on small business. How are the Liberal and National parties going to fund those tax cuts? (Time expired)

Senator URQUHART (Tasmania) (14:37): Mr President, I have a supplementary question. In what practical ways will the government's tax reform package help small businesses, in particular, adjust to the changing economy and boost their productivity?

Senator SHERRY (Tasmania—Minister Assisting on Deregulation and Public Sector Superannuation, Minister for Small Business and Minister Assisting the Minister for Tourism) (14:38): One of the major reforms for small business will be the improved tax write-offs. At present, small business can claim up to $1,000 for each individual investment article. We intend to increase that to $6,500 per investment. That is a major boost for small business, funded by the mining tax. We are proud of this reform, funded by the mining tax. The Liberal and National parties oppose the mining tax. I suspect they will come in here and vote for the improvements in depreciation, for write-offs for small business, but they have a problem—how will they fund these things should they ever be elected to government? Where are the Liberal and National parties going to obtain the revenue? They are going to oppose the mining tax, and they say at the moment they going to reverse it if they are ever elected to government. No wonder they have to find $70 billion in cuts to govern­ment expenditure. (Time expired)

Senator URQUHART (Tasmania) (14:39): Mr President, I have a further supplementary question. Is the minister aware of any alternative policies to the government's tax package, and do those alternative policies mean Australians could miss out on vital economic reforms?

Senator SHERRY (Tasmania—Minister Assisting on Deregulation and Public Sector Superannuation, Minister for Small Business and Minister Assisting the Minister for Tourism) (14:39): I have outlined a very extensive series of tax cuts that flow from the introduction of the mining tax—a tax which the Liberal and National parties say they oppose. They are going to vote no to that mining tax. If the Liberal and National parties are to support this whole range of measures, and they apparently say they do—tax cuts for superannuation, tax cuts for small business, cuts to company tax—they are going to have to find the revenue from somewhere else if they carry out their promise, if they are elected to government at some time in the future, to reverse the mining tax. Consequently, we have a confession from the Liberal and National parties. Mr Hockey, the so-called shadow Treasurer, admits they are going to have to find $70 billion in cuts. They cannot have it both ways. They cannot come in here and oppose, and pledge to reverse, the mining tax and at the same time support tax cuts for small business and superannuation. (Time expired)