Kirsten Livermore (Capricornia, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on the latest national capital expenditure figures for the economy? How do these show the importance of spreading the benefits of the mining boom across the economy?

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

Peter Slipper (Speaker) Share this | Link to this | Hansard source

The Treasurer will return to being relevant. I call the honourable member for Capricornia on a supplementary question.

Kirsten Livermore (Capricornia, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Mr Speaker. The Treasurer has talked about the national benefit from the minerals resource rent tax. Can the Treasurer please outline what this means for local communities like mine in Central Queensland?

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

I thank the member for her question. There will be tax cuts—tax breaks, if you like—for 14,200 small businesses in Capricornia, there will be a boost to superannuation accounts for 48,000 workers right across Capricornia and there will be critical funding for infrastructure projects, particularly $120 million for the Peak Downs Highway, because we understand the importance of investing in these regions. Those opposite do not. They are prepared to take away tax breaks, from 32,000 businesses in North Sydney, for example. They are prepared to deny the workers in Warringah—54,000 workers—the boost to superannuation.

Peter Slipper (Speaker) Share this | Link to this | Hansard source

The Treasurer will address the supplementary question or he will resume his seat.

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

Mr Speaker, I am indicating great benefits in Capricornia and many people missing out in the electorates represented on the other side of the House.

Peter Slipper (Speaker) Share this | Link to this | Hansard source

It is appropriate I should now give the call to the honourable member for North Sydney.