Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

As I made clear in a previous answer, obviously the Henry tax review falls within the Treasurer’s portfolio, so if you have questions on the detail of that, Senator, I would suggest you put them to Senator Sherry, who represents the Treasurer. I can assist in relation to a number of the issues raised, however. For example, I would make the point that the move to a profits based regime will obviously, in general, be of greater assistance than a volumes based regime for more marginal operations. I make that as a general proposition.

The second point I would make is that a number of the commodities that you have discussed—not all, but some—are traded on world markets and obviously have their price set by world markets. For example, you mentioned phosphate. ABARE has advised that the price of phosphate is determined on world markets and by movements in the Australian exchange rates. I also make the point that, as I responded in response to an earlier question, the government’s modelling has indicated that the introduction of this reform, the replacement of royalties and the reduction in the company tax rate for all companies has, in fact, been independently modelled to bring down consumer prices by 1.1 per cent as well as to ensure that there is an increase in output as I have previously described. It may suit those opposite to run scare campaigns around a whole range of issues here; the fact is that this is about economic reform. It is about building a stronger economy and recognising that the benefits of the resources sector should be more fairly shared amongst all in Australia and should be utilised to make investments in other parts of our economy such as regional infrastructure, superannuation and reduction in the company tax rate. (Time expired)