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

My question is to the Treasurer. I refer the Treasurer to his own words yesterday in relation to the mining tax. He said:

The fact is that unused royalties are not transferrable, nor are they creditable.

I refer the Treasurer to the Heads of Agreement he signed with the mining companies that states:

All State and Territory royalties will be creditable against the resources tax liability … Any royalties paid and not claimed as a credit will be carried forward …

Treasurer, if you do not understand your own mining tax, how can we believe anything you say about the surplus? (Time expired)

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

I really do thank the shadow Treasurer for that question, because I not only understand the legislation; I support it. Unlike those opposite, we support a resource rent tax. We supported the PRRT and we are supporting the MRRT. In the forecasts, we are forecasting revenue of $9 billion. It is true that we are not providing a refundable credit, such as the refundable credit that was put forward in the RSPT. It is also true that those credits are not transferable. Royalty credits can be used, but they are used as a deductable allowance, and that is how it operates under the law: it is a deductable allowance. It is true that people have described that as creditable, including me in the past, but it is a deductable allowance, and it does not work the way in which the member over there described it this morning. It is deduction from profit—a deductable allowance. We on this side of the House understand the difference between a refundable credit and a deductable allowance.

Mr Dutton interjecting—

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The member for Dickson is warned!

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

That is what the legislation says: it is a deductable allowance. And no amount of moving all the words around by the shadow Treasurer can move away from that. It is a deductable allowance.

I want to finish on this final point. When we announced the resource rent tax, all of those opposite went down on bended knee. They went out to the millionaires and billionaires in the mining industry and the vested interests and said—

Mr Simpkins interjecting—

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The member for Cowan is warned!

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

They went out and said, 'We've got a tax cut for you.' We on this side of the House believe in resource rent taxes and understand their importance to the future of the country, and we understand that it is important that Australians get fair value for the resources they own 100 per cent, which is why we are supporting a resource rent tax. Those on the other side of the House are opposing one—one that will bring revenue to the Australian people so we can spread opportunity right around this country.

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

We love you, Swannie!

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The member for North Sydney will leave the chamber under 94(a). I continue to warn people—

Honourable members interjecting—

No, you cannot hear the warnings, because you are all making so much noise. If people will continue to ignore warnings and constantly interject, in direct breach of the standing orders, they should not be allowed in the chamber.

The member for North Sydney then left the chamber.