Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Hansard source

I thank my colleague from Tasmania, Senator Urquhart, for that question. A number of substantial profit results have been announced. Rio Tinto announced last week a record half-year profit of $7.6 billion. Xstrata announced that it has almost doubled its annual profit, to $5.15 billion, and BHP Billiton will announce its profit results later today and, according to media commentary, they are expected to be substantial.

The important thing is that these three companies have agreed to the Labor government's minerals resource rent tax. They do not oppose it, unlike the Liberal and National parties, which oppose the mining tax. The proceeds of the mining tax will be going to strengthen the broader Australian economy. The proceeds of the mining tax will flow through to business and to individuals, particularly in the form of superannuation. Not one cent of the mining tax revenue will flow to the budget bottom line. It will all be returned to the community, particularly to the business community.

Let me give some examples of how the proceeds will be spent. We will be reducing company tax to 29 per cent for the 2013-14 income year, with a more rapid cut for small business. There will be a new, accelerated depreciation arrangement. Currently, the maximum write-off is $1,000; this will be increased to $6,500 for small business—a significant benefit to small business. We will be cutting the tax on savings through a 50 per cent discount of up to $1,000 on interest income. These are a few examples— (Time expired)