Tim Ayres (NSW, Australian Labor Party, Assistant Minister for Trade) Share this | Hansard source

The principal purposes of the bill are to lower costs for businesses, to make Australia a more competitive destination for particular categories of Australian manufacturing—this will be underpinned by the national interest principles that were in the first tranche of legislation—and to rebuild manufacturing in Australia. Senator Smith said that this does nothing to lower the cost of manufacturing. It precisely lowers that cost, because, for eligible businesses, it provides a tax credit that specifically lowers their costs. As you indicated in your contribution, there is a very strong level of enthusiasm from industry.

In relation to the community benefit principles, the principal purposes of the legislation are to encourage investment in manufacturing in Australia, to reward successful businesses who manufacture here with a production tax credit and to incentivise manufacturing production here in Australia. From the government's perspective and view, I would have thought it was uncontroversial that Australians would expect that, where support is provided, some community benefit would flow from that. The act sets out six community benefit principles: boosting investment in local communities; boosting investment in supply chains and skills; broadly, providing good jobs. They are uncontroversial matters. What the bill sets out is that, led by the Treasurer, there will be a process of consulting with industry, and with communities more broadly, to set the rules, which will be set in a disallowable instrument that will come before the Senate in due course.