Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

I thank the member for Capricornia for that important question because today's capital investment figures are a resounding vote of confidence in our economy and a reminder of the strength of our economic fundamentals. It is remarkable that these could be achieved given the global instability that we face.

Planned business investment is going from strength to strength. Total capital expenditure is expected to increase from a staggering $164 billion this financial year to a record $173 billion next financial year. That is an extraordinary amount of strength in our economy and an extraordinary amount of money to be spreading across our economy. We are going to see some lumpiness in this investment, as we have seen in the December quarter figures, as different projects cease and others begin. But it is a huge investment pipeline which is gearing up and it is providing a bedrock of support for our economy, for economic growth and for jobs.

It is not all just about mining because we know that the growth of middle classes in Asia is going to bring demand for a whole range of goods and services elsewhere in our economy. We also understand that parts of our economy are not as strong as others and that is why, if we are going to meet the challenges of the future, we do need to spread the opportunities of this mining boom across the whole of our economy, not have it concentrated in a few regions in this country. That is why putting in place the MRRT, getting a source of revenue so that we can spread the opportunities of the boom right across the economy, is what our economic circumstances demand. And that is why we are using the revenue stream from the MRRT to give a significant tax cut to 2.7 million small businesses right across the country; to substantially increase the superannuation savings of Australian workers, particularly those on low incomes; and to make sure that we have some money to invest in critical infrastructure, particularly in the mining regions, which are having their quality of life severely impacted by mining in nearby communities.

When it comes to these tax breaks for small business, the boost to superannuation for Australian workers, the investment in infrastructure, those on the other side of the House want to rip it all away. They do not understand the challenges of dealing with mining boom mark 2. They would rather give a tax cut to Gina Rinehart and Clive Palmer than give a tax cut to 2.7 million small businesses right across our great country. They would rather side with those vested interests than side with Australian workers.

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