Jan McLucas (Queensland, Australian Labor Party) Share this | Hansard source

I have to say that, in the last 20 minutes, the debate around this issue has been characterised very much in the sorts of contributions we have had from senators across the way. It has been extraordinarily hysterical, and it has been littered with misinformation. Unfortunately, Senator Williams, you are leaving the chamber. It would have been an opportunity, potentially, for you to get some clarity on what this tax is about. The government’s tax reforms are about making Australia a more attractive investment destination, including for the resources sector.

The resource superprofit tax is designed to ensure that Australians get a fair share from valuable non-renewable resources. Resource taxing is a better way to tax resources because it taxes only the profits and it fully recognises the large investments made in mining. A tax such as this rebates state royalties. Royalty and excises are based on volume or value and they do not rise with profits. It is important to remember that in 2008-09 the resource sector generated close to $90 billion of superprofits. Superprofits are profits above what a competitive business would normally expect to earn. In that same year state royalties and Commonwealth excise returned only $12.3 billion to the Australian budgets. The effect of these proposals is in fact a rebalancing. Ten years ago Australians, through their government, received $1 out of every $3 of profit reaped by the resource sector. Today it is $1 in every $7 of superprofit. Surely that needs some attention.