Trish Crossin (NT, Australian Labor Party) Share this | Hansard source

Through the chair. He will think about that, I am sure.

These bills implement the minerals resource rent tax and extend the petroleum resource rent tax regime as part of reforms to obtain a fairer return on our non-renewable resources and will support growth across the entire economy. The bills provide for the taxation of the above-normal profits from mining of iron ore and coal. The MRRT is a tax on the realised profits from selling iron ore or coal that are attributable to the condition and location of the iron ore or coal just after it has been extracted. As you would know we are debating the legislation in the Senate this week and next week because the regime is due to apply from 1 July, the extension of the existing petroleum resource rent tax regime is to include onshore oil and gas projects, and all offshore projects will also apply from 1 July this year.

The design of this legislation aims to strike an effective balance between the government's policy objective of ensuring that all Australians receive a fair return from the use of our valuable mineral and petroleum resources and to provide an efficient, internationally competitive and sustainable taxation framework that will support continued investment in these industries. I know a lot of my colleagues have gone through the benefit of this legislation, but I am going to take some time in the Senate to reiterate it. I do that because mining is an integral part of the economy in the Northern Territory and, being the only government Territory senator, I think it is important that on this historic occasion, as we embark on this major reform, that the views of Northern Territorians and their support for this tax are reflected.

So what exactly will this revenue generated from the MRRT and the PRRT be used to fund? Predominantly, we know it is about important tax and superannuation reforms, and they go to a range of issues: company tax cuts for all companies from 1 July 2013, a new tax break for up to 2.7 million small businesses, and investment in our regions through the Regional Infrastruct­ure Fund and the Regional Development Australia. I will just stop going through the list there and say that when you come from a place like the Northern Territory, where I think the last estimation for sealing one kilometre of road was $1 million, and when you think that there are at least 1,425 kilometres between Darwin and Alice Springs—if I remember that correctly, not having driven it thousands of times but many times; it is one of the very few sealed roads—

Senator Jacinta Collins interjecting—

No, I have never seen Gina's jet in the Northern Territory actually, but we would probably welcome some of her assistance with funding through this legislation, I have to say.

We have around 3,000 or so kilometres between Darwin and Katherine that is sealed road, but once you get east and west of the Stuart Highway there are thousands and thousands of kilometres of unsealed roads—and that is just for starters. There are hundreds of airstrips that are relied upon in the Northern Territory for delivery of food, mail, health and emergency services. So infrastructure is chronically needed in the Northern Territory to a capacity that I think the funds that are generated from this sort of legislation will assist. Bridges are certainly needed, particularly down near Nooka way. Borroloola managed to get a new bridge last year through Regional Development Australia and Northern Territory funds. There are many examples. The road to Wadeye, for example, is often cut off. It is the same with the road between Katherine and Nhulunbuy as you go through East Arnhem over the Giddy River. It has always been unsealed and I am sure that with negotiations, the traditional owners would welcome a major upgrade to some of that infrastructure. So this is an opportunity to invest in our regions through the funding that will emanate from this legislation. It is inventiveness and incisiveness by this government and is really too good to pass up.

Another benefit will be simplifying personal tax for 6.4 million Australians, with a $500 standard deduction from 1 July this year and a $1,000 deduction from 1 July next year, rewarding personal saving for over five million Australians and with a 50 per cent tax discount on up to $500 of interest income from 1 July 2012, increasing up to $1,000 of interest income from 1 July 2013. There will be a boost to superannuation for 8.4 million Australians, with the first increase on 1 July 2013, and expanded superannuation concess­ions for 3.5 million low-income earners and about 275,000 over 50-year-olds from 1 July this year. There are many extensive benefits emanating from this legislation.

Our future tax system review recommend­ed implementing a resource tax regime which taxes profits rather than production in order to recognise different mining costs across projects. There was consultation with the industry, and after that the Australian government in 2010 announced the minerals resource rent tax. It will move Australia's resource-charging regime closer to a non-distortive, profit based tax that focuses on Australia's most significant bulk commodi­ties: iron ore and coal. A profit based system will get a better return for Australia for its non-renewable wealth and do it in a better and more efficient way than state royalties. The 'noalition' on the other side of the chamber, who champion no benefits of this government just for the sake of it, will want to suggest that industries will fold and that there has been no new development and no benefit since the announcement. Quite the contrary—all of the available industry statistics point to an extremely positive outlook for the mining sector. Since this government has announced its mining tax reforms, mining investment has skyrocketed from $35 billion in 2009-10 to $47 billion in 2010-11. That is expected to rise to $82 billion in this coming year. Mining employment has also grown substantially by 24.3 per cent. That is 44,200 mining jobs compared to 2.1 per cent for the whole economy over the same period.

What people opposite me fail to realise is that the economy in this country is changing the way in which we are going to generate revenue for governments to use. It is massively expanding through the minerals boom. We have had one boom. We were in opposition during that time. People will look around and do an analysis of how the Howard government performed during those 10 years and will, by and large, come to a conclusion that it was squandered, that money was not put into infrastructure. Billions of dollars were ripped out of the health system. Money was not put into the education system. Money was not put into the training system. In fact, we sat back and watched ANTA, the Australian National Training Authority, get hacked to death by the Howard government. Then we looked around and wondered why there were so many Australians without the necessary skills to get into the workforce to be part of this new and emerging boom that we are now expecting. The Labor Party has stepped up to the plate and put a lot of energy, effort and reform into the VET sector, supporting businesses, apprentices and young people in this country to have the skills they need so they can get on board the train and be part of this new and emerging resource benefit.