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

Thank you for your question. As I have mentioned, this government is very proud to present to the Australian parliament a minerals resource rent tax, which will raise approximately $11 billion. All of this money will be used in a number of ways, but particularly in superannuation tax cuts, to help pay for the increase in the superannuation guarantee and to provide tax cuts for small business. It will be used for a range of other measures as well. In the context of superannuation, as I have mentioned, and as we now know, the Liberal opposition for the first time ever has done a backflip and will support the increase in the superannuation guarantee.

There are three other measures in this package which is funded by the mining tax. The measure that I particularly want to draw to the Senate's attention is the current taxation arrangements for superannuation. There is a 15 per cent contributions tax that applies to all Australians contributions, regardless of their income level. This is particularly unfair for low-income and low-middle-income earners, who either pay 15c in the dollar on their income tax or, in some cases, pay no effective tax on income tax but pay a 15 per cent contributions tax. The government has announced as part of this package that is funded by the mining tax that it will rebate the contributions tax on superannuation for low-income and low-middle-income earners with salaries up to $37,000.

This is a very important equity measure. It will benefit some 3.6 million Australian workers who contribute to superannuation, of whom 2.1 million are females. It is paid for by the mining tax. In fact, this measure effectively removing the contributions tax from low-income earners' superannuation will effectively cost more than increasing— (Time expired)