Susan McDonald (Queensland, National Party, Shadow Minister for Resources and Northern Australia) | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Last week, the Western Australian premier warned that the government's proposed capital gains tax changes would discourage exploration and investment in our mining industry, which is essential for developing major projects. Does the government agree with the Western Australian premier that its decision will deter investment, reduce exploration activity and undermine the discovery of future critical minerals deposits vital to Western Australia and, indeed, Australia's economic prosperity?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

Thank you, I am familiar with the Premier's position, and in fact, as I walked here to question time, I think he was doing a press conference in the courtyard there. Obviously the Prime Minister engages with Premier Cook and the government of Western Australia regularly and has engaged, including going to WA on many occasions. I understand the proposition that is being put.

I would make this point: the innovative business CGT concession that is flagged and scoped in the consultation paper that I was discussing with Senator Hume and Senator Cash is subject to innovation criteria. The government is supporting exploration and mining in other ways, including through billions of dollars invested across special investment vehicles in Australian resources firms and project. Of course, you mentioned critical minerals. There is also an investment of $5 billion in the Critical Minerals Facility to grow critical minerals mines and processing, and there is the critical minerals production tax incentive, which is a 10 per cent tax offset.

Sue Lines (President) | Link to this | Hansard source

Senator McDonald, on a point of order?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources and Northern Australia) | Link to this | Hansard source

My issue is with relevance—specifically, does the government agree with the Western Australian premier?

Sue Lines (President) | Link to this | Hansard source

The minister is being relevant.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

I went directly to the issue you were raising. I was trying to do you the courtesy, Senator, of responding directly, and I'll do it again. The concession is broadly available. It's not limited to a particular sector, but it is subject to innovation criteria. You asked about tax concessions for the sector, and I was outlining the ways in which taxpayers and this government have supported, particularly, critical minerals and, more broadly, resources firms and projects.

Sue Lines (President) | Link to this | Hansard source

Senator McDonald, first supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources and Northern Australia) | Link to this | Hansard source

Labor's own budget papers show mining investment growth is heading for zero by 2027-28. Isn't the truth that, after scrapping support for junior explorers, increasing uncertainty and driving away investment, the Albanese government has turned its back on the very industry that pays Australia's bills?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

No. I don't accept that at all. I appreciate it's a political point you're making. It is the case that WA is a powerhouse of the Australian economy. We know how important the resources sector is for this country. As I said, the critical minerals production tax incentive, which I think you voted against, Senator, will turbocharge critical minerals investment in Western Australia. We also had, for example, a $3.4 billion commitment to the Resourcing Australia's Prosperity program, which is a generational investment in precompetitive geoscience. As I said, we have billions of dollars in production credits for critical minerals and our critical minerals tax incentive. So there are a range of tax incentives which reflect the importance of the resources sector and, in particular, critical minerals.

Sue Lines (President) | Link to this | Hansard source

Senator McDonald, second supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources and Northern Australia) | Link to this | Hansard source

The Association of Mining and Exploration Companies told a Senate inquiry last week that the government's Critical Minerals Strategy says that the world needs 50 new lithium mines, 60 new nickel mines and 17 new cobalt mines. It seems counterintuitive to make exploring for these minerals fundamentally harder in Australia, but that's what the proposed CGT reforms do. Does the government's legislation align with the government's Critical Minerals Strategy?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

Senator, if you are such a supporter of critical minerals, why is it that you voted against the tax incentive? I'm trying to be courteous to you, Senator, but it really does smack of hypocrisy for you to have a go at the government on tax changes when you voted against a tax incentive for the very sector you purport to be supporting. Let's be really clear: the National Party and the Liberal Party voted against the production tax incentive for critical minerals. We all understand that and we all understand what they're doing now.