Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I thank Senator McLucas for the question. Job creation, a stronger economy and supporting Australian businesses to grow are key priorities for the Rudd Labor government. Our economic policies contributed to the creation of some 279,000 jobs in the year to May. Indeed, in the 2½ years since the government was elected there have been some 400,000 new jobs created despite a global recession—and that is in marked contrast to other advanced economies.

Making a strong economy even stronger is the future plan of this government. Unlike those opposite, we are planning for the future. That is why we are introducing a resource super profits tax. We are unapologetic about doing this. This reform is about turning some of the future profits from the mining sector into other forms of long-term wealth. A fair share of the profits from the resource super profits tax will help to fund company tax rate cuts from 30 per cent to 28 per cent. A fairer share of the profits from the resource super profits tax will also fund an instant write-off for small business for all assets of up to $5,000. In fact, about one-third of the revenue raised from the resource super profits tax will go towards business tax reform, which will make it easier for small and larger companies to hire more employees, expand operations and grow our already strong economy and make it even stronger. Changes to mining taxation are expected to increase GDP by 0.3 per cent in the long run, and the cut in company tax will increase the growth of the economy by 0.4 per cent. That is a long-run boost to GDP of around 0.7 per cent, which will add to jobs. (Time expired)