Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I thank Senator Hurley for her question. The government is engaged in a process of major tax reform that will broaden and strengthen the economy for all Australians. This reform package is funded by the resource super profits tax. We are unapologetic about that. It is to fund a major reform of our tax system; it is not to bring the budget into surplus, as is claimed by those opposite. Australia avoided a recession, unlike most other comparable countries in the world. We have a larger economy today than many other countries had two or three years ago before the worst of the global financial and economic crisis. We are bringing our budget back to surplus in three years time, three years ahead of schedule. The resource super profits tax is not for that purpose. It funds tax reform; it does not bring the budget back into surplus.

There is an extensive range of tax cuts and improvements for the benefit of the broader community. I touched on one yesterday. The government is to reduce the company tax rate from 30c to 28c in the dollar and increase instant write-off of assets for small business from $1,000 to $5,000. A further initiative, which will not proceed without the resource super profits tax, is that from 1 July 2012 taxpayers will be able to claim a $500 standard tax deduction for work related expenses. This will increase to $1,000 one year later. There is also a significant reduction in red tape. Some 6.4 million Australians will be net beneficiaries of this new standard tax deduction. It will be introduced via what is known as a tick-and-flick tax return. It is a significant improvement in benefit for over six million Australians, a very significant simplification of our tax system and a reduction in red tape. (Time expired)