Doug Cameron (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business and Minister representing the Assistant Treasurer, Senator Sherry. How will the government use the proceeds of the minerals resource rent tax to deliver the benefits of the mining boom to Australia's small businesses, and what role will the minerals resource rent tax play in delivering a simpler and fairer tax system and higher superannuation for fund members and in spreading the benefits of the resources boom to all Australians?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Thank you, Senator Cameron. The minerals resource rent tax was introduced in the House of Representatives yesterday. It will raise some $11 billion-plus. This Labor government is very proud of this new tax. We are very proud of it because that $11 billion will be spent on cutting tax elsewhere in the Australian economy. At a time of a 260 per cent increase in mining profits—including, we saw from BHP, some $23 billion—we intend to use that $11 billion to cut taxes in the rest of the community. Let me give a couple of illustrations.

We will be cutting tax on small business by over a billion dollars a year with money from the minerals resource rent tax. We will be introducing a much improved instant asset write-off rule, with the current $1,000 maximum going to $6,500. The Liberal Party will not support this tax cut for small business.

We intend to cut tax on the superannuation of 3½ million Australians—the contributions tax. Low- and middle-income earners, 3½ million of them, will have their contributions tax cut. The Liberal Party will not support the cutting of the contributions tax to 3½ million low- and middle-income earners.

We intend to increase the superannuation guarantee. Again, we are very proud of the superannuation guarantee. We introduced compulsory superannuation in this country, opposed by the Liberal-National Party. They warned that compulsory superannuation would destroy the economy, like the mining tax. (Time expired)

Doug Cameron (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. In what practical ways will the government's tax reform package funded by the minerals resource rent tax help Australians with their tax affairs, reward savings and increase the flow of credit?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Thank you. In addition to tax cuts for small business and tax cuts for 3½ million superannuation contributors, we will be making tax time a lot easier for 6½ million Australians. We will be introducing a standard tax deduction: $500 in the first year and a thousand dollars in the second year. Six and a half million Australians will be receiving a standard tax deduction of up to a thousand dollars. The Liberal Party do not support this important reform either. They oppose a thousand-dollar tax deduction for 6½ million individuals in our tax system. They oppose this important reform.

In addition to this we intend to deliver tax relief on up to a thousand dollars in savings for individual Australians. Tax cuts to small business, tax cuts to superannuation contributions, standard tax deductions and, of course, for a couple of million Australians interest-free savings. (Time expired)

Doug Cameron (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I have a further supplementary question. Is the minister aware of any alternative policies to the government's tax package, and do these alternative policies mean Australians could miss out on the benefits of the mining boom?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Thank you. I have summarised at least some of the measures that will be flowing as a consequence of the more than $11 billion to be collected from the mining tax. The Labor government will be delivering tax cuts to more than two million small businesses.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

How many?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

More than two million. What do the Liberal Party say to these tax cuts for small business? No. We will be delivering to 3½ million Australians tax cuts to their superannuation. What do the Liberal Party say to tax cuts on superannuation for 3½ million Australians? They say no to those tax cuts. What do they say to up to $1,000 in savings on interest—to that tax cut?

Government senators: They say no.

They say no. What do they say to a standard tax deduction for 6½ million Australians?

Government senators: They say no.

They say no. And what do they say to the mining superprofits tax?

Government senators: They say no.

They say no. All you can do is say no, increase taxes and cut mining tax to the— (Time expired)