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

I thank very much the member for Bradfield for his question. In response to his question I would draw attention to the fact that the modelling produced as part of the Treasury’s report underlines not only the growth in the economy and employment overall as a consequence of the government’s tax reform package but, on top of that, the growth in employment activity within the mining industry as well. That is underlined in the Treasury’s analysis and reflected in the Econtech report.

Secondly about tax reform, I would say to the honourable member that he should also pay attention to the fact that in his electorate he would have some thousands of small businesses who are currently, frankly, in line to obtain a new tax advantage from what the government has put forward. We are also, in terms of those incorporated companies within his electorate, promising them a two per cent tax cut; he is promising them a two per cent tax increase. That is the difference between us and them. The overall impact of these tax reforms on the business community therefore generates a more competitive business sector. They draw its costs down and therefore boost its profitability and the activity and employment it generates in the whole economy.

I would also like to know how many working people in the honourable member’s electorate would benefit from increasing super from nine per cent to 12 per cent. Let me say to the honourable member: there will be many people in his electorate of Bradfield whose current anticipated retirement income will not be adequate to service them effectively in their retirement years. What we are on about is better super for something like 7½ million working families. What we are on about is a tax cut and tax breaks for about 2.4 million Australian businesses, as well as a reduction in the company rate, affecting about three-quarters of a million Australian businesses.

The honourable member goes to the impact specifically of our proposed tax reform on the mining industry. I simply alert the House to one fact—that is, let us look at how the old stock market is performing today. The Rio share price just prior to the time that the government announced its tax reform proposals was $72.10. As of today, Rio has passed that level and is now trading at $72.25. I say to the honourable member opposite that we should look at the market’s assessment of the real impact of the proposed tax reform on the bottom line performance of the mining industry overall. There is a difference between fact and fear, and what the honourable member has done in his question is to have sought further to perpetrate fear. I would suggest that we have a debate based on fact.

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