Helen Polley (Tasmania, Australian Labor Party) Share this | Hansard source

Thank you, Madam Acting Deputy President. I know those people opposite do not agree with this legislation but they might actually learn something if they listened to other speakers. As Ken Henry concluded in Australia's Future Tax System Review:

The community, through the Australian and State governments, owns rights to Australia's non-renewable resources and should seek an appropriate return from allowing private firms to exploit these resources.

Current charging arrangements failed to collect a sufficient return for the community because they are responsive to changes in profits. Further, the current arrangements distort investment and production decisions, thereby lowering the community's return from its resources.

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A rent-based tax would, over time, earn for the community a greater return from the use of its resources while still attracting private investment.

I will turn now to the benefits for small business which we support and those opposite are going to vote against. From 2012-13, up to 2.7 million Australian small businesses will be able to instantly write off any asset worth up to $6,500 as a tax break to help with cash flow and to cut paperwork. This is up from $1,000. Small businesses will also be able to write off other assets, apart from buildings, in a single depreciation pool at a rate of 30 per cent. From 2012-13 small businesses will also be able to instantly write off up to the first $5,000 on the purchase of a motor vehicle, including utes and vans. Further, approximately 720,000 small business companies could benefit from the reduction in the company tax rate to 29 per cent from 2012-13. These are real benefits going directly to small businesses.

The government are also looking to assist workers through this legislation. As part of the Clean Energy Future package we will be tripling the tax-free threshold from $6,000 to $18,200, which will deliver tax cuts of at least $300 to around 60 per cent of our taxpayers. About 8.4 million Australians will benefit from the increase in the superannu­ation guarantee from nine per cent to 12 per cent in 2013-14. I think Senator Sherry last night more than adequately put on the public record the benefits of superannuation and the history that Labor governments have of supporting Australian workers with the superannuation. Someone on full-time average weekly earnings who is 30 years of age will now be around $108,000 better off at retirement.

Around 10 million taxpayers in Australia have benefited from the government's three rounds of tax cuts. Changes have included a person with $50,000 of income paying $1,750 less tax in 2011-12 compared to when we came to office. That is 18 per cent less tax. A person with $80,000 of income will be paying $1,400 less tax in 2011-12, including the flood levy which is $150 for them, so they are better off than when we came into office. And if we look at the benefits through investment in infrastructure, there will be $6 billion for local roads, rail and ports as part of the government's Regional Infrastructure Fund.

I do not see what the problem is. Most economists do not see what the problem is. Of course, that does not include those opposite. As we know, the coalition's economic 'three stooges' cannot see the benefits of this tax. But the Gillard Labor government is governing for all Australians, not just those that are already privileged in our community. I commend this package of bills to the Senate.