Anne Urquhart (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business, Senator Sherry. Is the minister aware of the profit results announced by the country's largest mining companies in recent days? Have these companies agreed to accept the government's minerals resource rent tax? How will the government use the proceeds of the minerals resource rent tax to deliver the benefits of the mining boom to all Australians?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

I thank my colleague from Tasmania, Senator Urquhart, for that question. A number of substantial profit results have been announced. Rio Tinto announced last week a record half-year profit of $7.6 billion. Xstrata announced that it has almost doubled its annual profit, to $5.15 billion, and BHP Billiton will announce its profit results later today and, according to media commentary, they are expected to be substantial.

The important thing is that these three companies have agreed to the Labor government's minerals resource rent tax. They do not oppose it, unlike the Liberal and National parties, which oppose the mining tax. The proceeds of the mining tax will be going to strengthen the broader Australian economy. The proceeds of the mining tax will flow through to business and to individuals, particularly in the form of superannuation. Not one cent of the mining tax revenue will flow to the budget bottom line. It will all be returned to the community, particularly to the business community.

Let me give some examples of how the proceeds will be spent. We will be reducing company tax to 29 per cent for the 2013-14 income year, with a more rapid cut for small business. There will be a new, accelerated depreciation arrangement. Currently, the maximum write-off is $1,000; this will be increased to $6,500 for small business—a significant benefit to small business. We will be cutting the tax on savings through a 50 per cent discount of up to $1,000 on interest income. These are a few examples— (Time expired)

Anne Urquhart (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister outline to the Senate how Australians will receive better retirement incomes through the government's tax reforms funded by the mineral resources rent tax?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

In addition to cuts to com­pany tax, in addition to substantial improvements to write-off for small business, we will also be making significant improvements to superannuation. We will be increasing the superannuation guarantee from nine to 12 per cent. We will also be reducing the contributions tax paid by millions of low- and middle-income earners. Those important superannuation reforms will not only benefit those individuals, millions of Australians, it will also benefit the economy.

Opposition Senators:

Opposition senators interjecting—

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

We know that those opposite, who are so busily interjecting, oppose the improvements to superannuation, they oppose the reduction in company tax to small business, they oppose the significant tax benefits that will flow through to business and to superannuation, because they oppose the mining tax. (Time expired)

Anne Urquhart (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

I ask a further supplementary question, Mr President. Is the minister aware of any alternative policies to the Gillard government's historic tax and superannuation reforms? Do these alternative policies pose threats to Australians' retirement prospects and to our economy?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

As I have outlined, the proceeds from the mining tax are used to strengthen the economy. They are used to reduce company tax and to assist small business. They are being used to increase the superannuation savings of Australians by billions of dollars. Importantly, those savings not only increase personal savings for retirement, they strengthen the Australian economy. We heard a lot of opposition from the Liberal-National party in 1992-93 opposing compulsory superannuation, predicting doom and gloom, predicting mass unemployment, predicting that the economy would be disrupted by the introduction of compulsory superannuation. They make the same prediction again. Of course, it did not happen. You will rarely find anyone who will criticise compulsory superannuation in this country because it strengthened the economy, it strengthened investment and it strengthened jobs. That is the sort of program that this Labor government is determined to deliver. (Time expired)