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

My question is to the Treasurer. I remind the Treasurer that the mining tax has raised $126 million in its first six months and that it was budgeted for $1 billion over that period. Given that the tax office has spent over $50 million administering the tax, will the Treasurer now face reality, admit defeat and join with the coalition to abolish this failed tax?

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

I thank the shadow Treasurer for that question which goes to the purpose of the MRRT, but it also goes to the revenue forecasts. I wish to address the question of revenue forecasts immediately.

Kelly O'Dwyer (Higgins, Liberal Party) Share this | Link to this | Hansard source

Take responsibility!

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The member for Higgins might take responsibility for observing the standing orders.

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

Implicit in the Shadow Treasurer's question is that, somehow, Treasury forecasts can never change. The fact is that they do change frequently. In fact, we bring down a budget, bring down an update, and of course they are then matched against revenue heads as they come in monthly. There is nothing unusual about this. For example, when those opposite were in power, revenue was adjusted upwards by massive amounts—unexpected rivers of gold. Over $300 billion in something like three years. Those forecasts were adjusted. The truth is this: at the end of last year and through the second half of last year, there was a dramatic collapse in commodity prices. That collapse in commodity prices has impacted upon profits, and when profits go up resource rent taxes go up, and when profits come down resource rent taxes come down. Of course those opposite have always opposed a resource rent tax. Any amount of revenue from a resource rent tax is a direct affront to those opposite, who go down on bended knee to their mining billionaire friends. Let's be very clear that they do not support resource rent taxes. In fact, if the attitude that is being expressed over there were to have prevailed over the last 25 years, we would never have had a PRRT which has now raised $28 billion, but that resource rent tax was opposed by those opposite just as this resource rent tax is now being opposed by those opposite. The truth is that prices have come down dramatically; but, as the tax commissioner said in his note on Friday, a partial recovery of commodity prices has been reflected in a partial recovery in revenue.

The fact is that this country needs a resource rent tax for our children and our grandchildren. Everyone on this side of the house is proud of the fact that we understand that the Australian people own our mineral resources 100 per cent and that we are all entitled to some of the super profits that flow from those. The attitude of those opposite is to get down on bended knee to the mining billionaires. So what we are seeing here is another misrepresentation and attack on good public policy to hide the fact that they have a vicious attack on the living standards of working Australians plan, by getting rid of the tripling of the tax free threshold, by knocking off the schoolkids bonus— (Time expired)

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

My supplementary question is to the Treasurer. Given that the Treasurer has already redesigned the mining tax on five occasions, will he now rule out redesigning the tax again before the election on 14 September?

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

As the Prime Minister indicated before, there is already a process in place going through the federal Treasury and state treasuries to look at the issue of royalties. That was announced following the finance minister's Treasury meeting at the end of last year, but apparently this is another fact that shadow Treasurer is not aware of. The fact is, as I said before, there has been a dramatic impact in terms of commodity prices on the revenue and a somewhat small recovery in the revenue as a consequence of a small recovery in commodity prices.

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

Its $30 a tonne for iron ore!

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The member for North Sydney has asked his question.

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

What I said on Friday—and I will say it again—was that our Treasury and the tax department will look at the performance of this tax in light of prices and in the normal way.