Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer confirm that all of the spending announcements associated with the government’s great big new mining tax are a growing recurrent cost to the budget? Given that the Treasurer will spin every dollar of the new mining tax, what happens to the budget if the tax does not raise the $12 billion in the budget?

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

We have made it very clear that if the tax is not passed and if the revenue is not there, we cannot proceed with the measures that we have outlined. We are confident the tax will raise the $12 billion and we can proceed with the measures that those opposite—

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order on relevance. The question was what will happen if the tax does not raise $12 billion.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Treasurer is 15 seconds into his answer.

Bruce Billson (Dunkley, Liberal Party, Shadow Minister for Small Business, Deregulation, Competition Policy and Sustainable Cities) Share this | Link to this | Hansard source

He is being coached. Davis Cup rules don’t apply here.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! If people perhaps listened and did not interject they would get the full 15-seconds worth. The Treasurer has the call.

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

I have made it very clear that every cent of the $12 billion raised from this tax over the forward estimates will be spent on the very important initiatives that the finance minister and other ministers were talking about before. Now I have the hypothetical question, ‘Well what if it doesn’t raise the $12 billion?’ We are confident that it will. We are confident that this is a very fair tax, and we are going to invest the proceeds in economic reform.

What those opposite are so embarrassed about is that we are up to the challenge of putting incentive in the tax system, cutting the corporate rate, giving a $5,000 instant write-off for small businesses and boosting superannuation in this country. They are acutely embarrassed that their negative position in this House, because they do not want to see Australians get a fair share of their mineral resources, is going to result in the fact that tax cuts will not go to small businesses or that other investment in infrastructure will not happen or that the corporate rate will not be cut. There is going to be a very high price paid by the opposition for them refusing to pass these very important initiatives which go to the heart of the economic reform challenge we face as a nation.

Julie Owens (Parramatta, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business, Independent Contractors and the Service Economy. How will small business and independent contractors benefit from the government’s tax breaks for small business? Are there any threats to these reforms?

Craig Emerson (Rankin, Australian Labor Party, Minister Assisting the Finance Minister on Deregulation) Share this | Link to this | Hansard source

Are there any threats! I thank the member for Parramatta for her question and acknowledge that the member for Parramatta ran a successful small business and we will be meeting with the Parramatta Chamber of Commerce to discuss small-business issues in the local area in the very near future. The government supported Australia’s small businesses and our tradies during the global economic recession and we will support them again during the economic recovery. The instant write-off of assets valued at up to $5,000 will allow small businesses and tradies to immediately write off the full value of equipment and tools, like laptop computers, office equipment, welding equipment, ride-on lawnmowers, Makita table saws, Gentech electric generators, display cabinets for retailers, coffee-making machines for cafes, double-door fridges and industrial dishwashers for restaurants and, I am advised, 300-millimetre Birko meat slicers—that reminds me of the opposition leader, really. The instant write-off measures will improve cash flow and profitability for Australia’s 2.4 million small businesses and our tradies. Australia’s 720,000 small-business companies will benefit from an early start in the reduction in the company tax rate from 30c to 28c. That will start for small businesses on 1 July 2012.

I was asked by the member for Parramatta whether there are any threats to these wonderful initiatives, to these tax breaks for small businesses. I have to report that there are threats in the form of the Leader of the Opposition. The small-business tax benefits are to be funded by the resource superprofits tax, but the Leader of the Opposition has said that he will attempt to use the coalition numbers in the Senate to block the passage of the resource superprofits tax. Of course, if the opposition leader succeeds in his attempts to block the resource superprofits tax, he will deny a tax break to every small business in this country. What has the coalition got against small business when we supported them through the economic downturn? Those opposite opposed the stimulus and opposed the support that we provided during the economic downturn, and when we want to give small business some credit for the way they managed the economic downturn and give them a tax break to invest in productive assets during the economic recovery, what does the opposition leader say? ‘No—deny them those benefits.’ He will do everything he possibly can to achieve that outcome by blocking the resource superprofits tax.

The opposition leader must explain tonight, in his budget reply, why he would abandon small businesses and tradies. He must detail his spending cuts and explain his treachery to Australia’s tradies and small businesses. This is a man who supports the New Zealand model of economic recession by telling Australian small businesses that a good old-fashioned recession will be great for them—a little bit of discipline, a little bit of leanness and a little bit of meanness in the tough world out there in the marketplace. This is what this right-wing extremist describes as tough love. The right-wing extremist sitting opposite describes this as tough love. My advice to small business is this: watch out if the opposition leader tries to embrace you with his tough love, because he will squeeze the life out of you and expect you to thank him for it in the morning.

I have drafted some words for the opposition leader’s budget reply speech tonight that he might find useful. I offer them in a spirit of generosity. He should say: ‘Tonight I will explain why I intend to deny a much deserved tax break to every small business and tradie in Australia.’ Mr Speaker, as you know, as I know and as everyone here knows, the Rudd government is the best friend small business has ever had.

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

My question is to the Treasurer. Can the Treasurer confirm that his supertax on resource profits will also apply to quarrying for sand and gravel and to mining limestone for cement production? Why wouldn’t an Australian cement production company simply move to China or Indonesia, neither of which is proposing a great big new tax on mining?

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

Those companies that are involved in those activities are welcome to talk to the Treasury through our consultation process. I have no intention in this House today of defining or setting the boundaries for that.

Andrew Laming (Bowman, Liberal Party) Share this | Link to this | Hansard source

Mr Laming interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

I remind the member for Bowman, given the prominent seat that he is in, that he might wish to be here towards the end of today’s proceedings.