Steven Ciobo (Moncrieff, Liberal Party, Parliamentary Secretary to the Treasurer) Share this | Hansard source

The good news is that the member for Perth, according to media reports, said, 'We've got to get rid of this damn tax.' That was reported as her comments to caucus yesterday. This is the 'damn tax'—to use her words—that the former Treasurer referred to as 'an historic reform'. This is the damn tax about which the former Treasurer, the member for Lilley, said, 'The mining tax linked investments cannot be made without mining tax revenue'—this is the $16 billion of associated expenditure—which, by this very amendment, the Labor Party is attempting to drag back onto the floor of the chamber and to defend as being in some way a step in the right direction, as being in some way a policy initiative that ought to be supported, and highlighting, again, that apparently that Labor's failed mining tax supports 'the benefits of a strong mining sector, and supports a fair taxation system'.

Even though corporate miners in Australia are among some of the biggest taxpayers in the nation, even though corporate miners in Australia pay significant amounts of royalties to state government and even though corporate miners in Australia pay substantial amounts of payroll tax, the Labor Party runs the line that in some way the mining sector is not making its fair contribution to Australia. On each of those fronts, let me make it clear that the coalition does not support the amendment that was moved by the Australian Labor Party. We do not support it and we do not support Labor's failed approach.

Specifically, this bill—that is, not the amendment; the bill that was moved by the government—is an integrity measure that is designed to prevent the immediate deduction for mining, quarrying and prospecting rights first used for exploration being used outside its intended purpose. The measure is necessary to ensure the sustainability of this concession over the long term. The cost of mining, quarrying and prospecting rights first used for exploration will be deductible over the shorter of 15 years or the effective life of the right or information.

The government is continuing to work with industry to address concerns around permits acquired through farm-out arrangements and interest realignments, which will remain immediately deductible. This will protect the acquisition of rights and information for genuine exploration by ensuring its tax treatment supports the acquisition of unexplored tenements. We do not support the amendment. I commend the bill to the House.

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