Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

Firstly, the overall impact of the government’s tax reform plan is to increase employment across the Australian economy. Secondly, can I say to the honourable member on the point that she raised from her constituent on the matter of small business, small businesses will benefit first of all—the 30 per cent of them which are incorporated—from the overall two per cent reduction in the company rate and, secondly and most significantly, for all 2.4 million Australian businesses, the impact which arises from the $5,000 each year tax write-off which is possible against the assets which they invest in. Can I say therefore to the honourable member, on the question of the impact on small business, there are two specific measures contained in the government’s overall tax package which assist small business.

The honourable member then goes on to ask about superannuation earnings, in particular for self-funded retirees. All superannuants have an interest in the long-term performance of Australian equities markets and in the other investments which superannuation funds make. Can I draw the honourable member’s attention to what the Treasury’s analysis says about the future performance of the Australian mining sector as a consequence of the broadening of the base of the mining sector which is achieved by these reforms: a 4.5 per cent increase in mining activity and an increase in employment in the mining sector. Over time, you can see that therefore this is a sound set of reforms for the mining industry as it looks to the future.

Therefore, whether it is the economy at large or the mining sector in particular, the government stands by these reforms. They are good for the economy, they are good for growth, they are good for employment, they are good for business and therefore they are good for the long-term investments and therefore returns to Australian superannuants. I conclude by saying this for the millions upon millions of Australian workers who stand to benefit from having their superannuation guarantee level increase from nine per cent to 12 per cent: we stand on the side of better super for working families; the Leader of the Opposition stands on the side of ripping that super away from working families.

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