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

Those opposite, in the midst of their guffaws, should reflect on the OECD’s report last week on the strength of the Australian economy worldwide. The fact that this economy came out of the global economic crisis as the only major economy not to go into recession is a matter of pride for the government and for the nation. The fact that we are able to produce the second lowest unemployment across the major advanced economies is a matter of pride for the government and the nation. These are fundamental achievements in addition to bringing about the lowest debt and the lowest deficit of all the major advanced economies.

The challenge for the future is to keep our Australian economy strong. That is why the Treasurer delivered a budget which will see the budget back in surplus in just three years time—three years ahead of time—and will also bring about a halving of net debt. These are significant economic achievements, particularly if those opposite would bother to reflect on the state of economies around the world. The global economy is not out of the woods yet, as those opposite, if they paid any attention to analyses of events in Europe, would also conclude.

The business of keeping the Australian economy strong, however, lies in also prosecuting a continued campaign of economic reform, and tax reform is a key part of that. This government believes in tax reform to deliver better super for working families, to bring about tax cuts for small business and to fund our future infrastructure needs for the nation at large. The government was elected to office with an ambitious reform program. We have abolished Work Choices, we have cut income taxes on three occasions and we have increased hospital funding by 50 per cent, but there is much, much more to be done and we intend to get on with the business of doing it.

On the question of tax reform, firstly, this is in Australia’s deep economic national interest, the reason being that this sort of tax reform will, in time, grow the Australian mining industry. It is a tax on profits not a tax on production. And even those opposite, led by the shadow minister for finance and others, have concluded that a tax on profits is the way to go for the future. Secondly, it also helps mining companies themselves because if you are being taxed on profits it means that, when commodity prices are high, you pay more but, when they are lower, you pay less—as opposed to a flat tax effectively operating on production and volume. Thirdly, this tax also enables us to get on with the business of building infrastructure.

The member for Flynn has asked a question about this. In his electorate I have sat down with the Gladstone Regional Council before and spoken to them about the impact of infrastructure demands in that part of Queensland through the developments in the Bowen Basin. Mr Speaker, these have to be funded in advance for the future, and we need a revenue stream to underpin that investment for the future. That is why the government is getting on with the business of these fundamental tax reforms—because at the end of the day what we are on about is a fair share for all Australians for the resource which all Australians own; that is, the natural resource wealth of Australia.

There is only one person in this House who has said that in fact he believes the mining companies are taxed too much, and that is the Leader of the Opposition. No-one in this parliament believes that the mining companies are taxed too much, except the Leader of the Opposition. We in this government intend to get on with the business of tax reform. It is necessary for long-term economic reform, and necessary to enable the funding of the hospital and health and additional reforms that we have proposed for the nation at large by keeping our economy strong. I would say to the Leader of the Opposition: rather than simply acting as a mouthpiece for elements of the mining industry and acting as a mouthpiece for Clive Palmer, of the Liberal National Party, why does he not stand up and act in the Australian national economic interest instead?

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