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

It is with the greatest pleasure that I rise to speak in support of this package tonight. My major contribution will be on the two superannuation matters. Most of the focus of this package has been on the proposed mining tax. In this new mining tax we have an important tax reform that will have important and positive consequences for the Australian economy. A lot of the attention has focused on the Minerals Resource Rent Tax Bill 2011 and the associated mining tax legislation and not on the package of tax reforms. The mining tax has received significant public commentary and debate, but this package, and the revenue that is derived from the mining tax, funds a number of very important tax reforms that will have a positive impact on the broader economy, tax cuts that are delivered in a range of different measures. This funds a cut to company tax for small, medium and large companies. It funds what is called a standard tax deduction, so millions of Australians will be able to claim a standard tax deduction of $500 and $1,000 in the second year. This standard deduction will do away with the need for millions of Australians to fill in complex tax returns.

I have to correct Senator Xenophon. The mining tax does not just fund the company tax cuts—and I accept that only about two-thirds of small business are incorporated—it also funds the very important measure of the improvement in small business write-offs. Write-offs for small business will improve from $1,000 to $6,500. That is a substantial tax cut for small business. It has not had a lot of attention in this debate.

What is important is that this package of reforms is properly funded. Unlike the Liberal-National Party who run around talking about cutting taxes here, there and everywhere but do not have any way of paying for it, this represents an appropriately funded package. We have a set of tax cuts, which I have summarised, that is funded by the introduction of a mining tax. This approach is fair and reasonable. It is reasonable in the case of mining resources that are covered by the mining tax. These resources are owned by the Australian people and, where mining companies are experiencing a significant increase in profits as a consequence of the mining boom that they did not project five, 10 or 15 years ago, it is only reasonable that the broader Australian community should benefit.

The mining boom does create strains in the Australian economy. I will not go into the details, but they are well-known and have been debated. This mining revenue tax gives us the capacity to strengthen the Australian economy through cuts in company tax, through improved write-offs for small business and through the increase in the superannuation guarantee and some associated tax cuts. This is fundamental and major tax reform that is fully funded, that will strengthen the Australian economy, strengthen savings, lead to additional employment and assist in growing the broader Australian economy.

I have a quick comment about costings. When I was Assistant Treasurer sitting in estimates, Senator Cormann peppered the officials with questions about costings. This is a costed package, costed by Treasury—