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

Thank you, Senator Hutchins. I am very pleased to outline the benefits that will flow from the range of tax cuts that we are introducing as a consequence of the revenue of the minerals resource rent tax. We have announced a package of tax reform measures. The first is the superannuation guarantee. That will be increasing from nine per cent to 12 per cent. That provides a significant increased benefit to all those Australian workers who have superannuation. Secondly, we will be abolishing the superannuation contributions tax that low- and middle-income earners pay as part of their superannuation. Well over three million Australians will see the removal of the contributions tax from their superannuation contributions.

We will be extending the $50,000 superannuation cap for those over 50 with balances below half a million dollars. We will be extending, for the first time, the age cap on the superannuation guarantee. Currently, if you are aged over 70 you cannot receive compulsory superannuation. We will be extending that to age 75. We will be introducing a standard deduction, which will radically simplify the tax affairs of over 6.4 million Australians who will be able to claim a standard tax deduction. This will radically simplify the tax system. We will be cutting the tax on savings through a 50 per cent discount on up to $1,000 of interest income. We will be reducing company tax for small business from 30 to 29 per cent. We will be introducing a new and more generous accelerated depreciation arrangement for small businesses through a $5,000 write-off measure. We will be boosting banking competition by slashing interest withholding tax. (Time expired)