Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

I might start by thanking honourable colleagues for their comments. My question is to the Minister representing the Minister for Resources and Energy, Minister Carr. Can the minister explain how the Australian mining industry will remain viable when Mr Rudd’s great, big new tax on mining will make Australia the highest taxed mining industry in the world?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

The government’s new tax reforms are about making Australia a more attractive place for investment, and that includes a more attractive place for investment in the resources sector. We will have a company tax rate falling from 30 per cent to 28 per cent from 2013-14. We will have a resources super profits tax that only taxes projects when they become profitable, not on what they produce. We will have a resources exploration rebate that will provide an immediate cash rebate of 30 per cent for eligible exploration expenditure.

But that is only part of the resources super profits tax and what it is all about. It is also about providing essential infrastructure that will enable Australia’s resource industries to achieve their full export potential, starting with a $700 million investment in the period 2012-13. It is also about sharing the rewards of the resources boom so that all Australians get a return from the exploration of this non-renewable resource. It is about equity and it is about social justice. The reality is that it is about the Australian community— (Time expired)

John Hogg (President) Share this | Link to this | Hansard source

Before I call Senator Abetz, I remind senators that supplementary questions are 30 seconds. We had hoped to have the clocks set to 30 seconds but that has not been possible. With your indulgence, I will be a judge of the 30-second mark. I advise that that will hold for this week. Hopefully when we come back, we will have the clocks properly set.

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given the minister’s answer, can he explain why a range of mining companies have already shelved plans to continue with exploration and certain projects? Three premiers, two of them Labor, have expressed concerns and a range of finance institutions have advised clients that Australia was now seen as a high sovereign risk destination to invest, with a significant risk of major capital flight out of Australia. Will the government back down on this great big tax grab, just as it did on its failed ETS tax grab?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

This is a measure, of course, the opposition opposes. It opposes all measures this government introduces. It opposes measures that we introduce sight unseen because this is an opposition that is about obstructing the progress of economic development in this country. This is an opposition that is not actually interested in debating the fortunes of this country because it has already determined that it will oppose any measure that this government introduces. We have a process of discussion with the mining and resources industries and the states about implementation details. But we are determined to see that Australians get a fair share of the resources that go towards this very important industry—resources that the community of Australians have a right to enjoy.

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given that this great big new tax will raise $9 billion per year compared to the $8 billion per year interest repayment required in 2012-13 to service Labor’s great big debt, doesn’t this just prove that the government is raising taxes simply to pay for its reckless spending to the detriment of jobs in the resources sector—or is it all just a great big coincidence?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I think the opposition has to face up to its responsibilities to the Australian people because, as far as this government is concerned, we have a responsibility to capture the real value of our mineral wealth and apply it to make this country fairer and stronger. We are using this revenue to generate more superannuation savings for working families, we are using it to lower taxes for all companies—especially for small business—and we are using this revenue to meet our future infrastructure needs, particularly in the mining states. The government takes a responsible approach; the opposition takes an irresponsible approach. Our focus is on building this nation for the common good and we will not be deterred by vested interests or by the servants of the status quo over there. (Time expired)