Marise Payne (NSW, Liberal Party, Shadow Minister for COAG) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Wong. Can the minister explain why at a time of increasing economic uncertainty as a result of the carbon tax and a chronic housing shortage the government is now imposing additional tax reporting obligations on the thousands of self-employed tradespeople who make up a crucial part of the housing and construction sector?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

First, there are a number of aspects to the first part of that question which obviously we do not agree with in terms of the effect of a carbon price. I think we have had a previous discussion in this place, including with the senator, on the likely impact of a carbon price, which is not what she has previously asserted both publicly and in this place. I would also point out the unprecedented investment this government has put into both social housing and housing more broadly. I think the senator is referring to an initiative announced in the budget that the Assistant Treasurer has carriage of in terms of reporting arrangements, so I do not have information before me to assist her in more detail, but if she asks a further question I will see if I can provide anything; otherwise I will take the question on notice.

Marise Payne (NSW, Liberal Party, Shadow Minister for COAG) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister advise why the government is not prepared to let independent contractors get on with the business of building houses instead of tying them up in red tape and viewing them only as possible employees and, I assume, potential future union members?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

It is amazing how much they return to the desire to trash the trade union move­ment. My recollection, and I will correct this or add to this if I am wrong, is that the initiative which was announced in the budget was in relation to reporting arrangements—

Marise Payne (NSW, Liberal Party, Shadow Minister for COAG) Share this | Link to this | Hansard source

It is a massive compliance issue.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

It is interesting that the senator is so concerned about small business when her party is opposing a tax cut for small business. Let us be clear. Every time the Liberal Party come in here and argue about small business and pretend that they care about small business, they should be upfront with the Australian people that they must be the first coalition in decades who are actually arguing for higher taxation rates for Australian small business. So if she is worried about red tape and compliance I suggest that the senator might look at the economic lunacy of their position, which is about imposing higher taxes on this sector. But in relation to the initiative, I understand it is a payment reporting system designed to improve the tax compliance of businesses in this sector. (Time expired)

Marise Payne (NSW, Liberal Party, Shadow Minister for COAG) Share this | Link to this | Hansard source

I ask a further supplementary question, Mr President. Will the minister indicate whether the government will actu­ally compensate these self-employed trades­people for the extra time and money they will have to devote to complying with this new reporting burden, especially when they are also going to be suffering from the higher costs of the carbon tax?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

You would have to say that one of the largest compliance burdens imposed on small business by a government was in fact the Howard government with the GST. Don't we all remember that. It is interesting that Senator Payne wants to come in here and talk about compliance burdens.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

That is a Liberal Party tax, so it is okay.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Senator Conroy reminds me that taxes imposed by Liberal governments, including state governments in the mining sector, are okay. As I recall from the budget announcements, the reason this was introduced was that the ATO had found a high level of noncompliance in relation to tax obligations by contractors in this indust­ry. The senator may not believe that tax compliance is an important principle, but a party with sensible economic policies would recognise that it is.

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Wong. Can the minister please outline to the Senate the benefits to the Australian economy of ensuring a fairer return on profits from Australia's resources?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

While this is a government that is absolutely focused on putting in place the reforms that are about securing Australian jobs today and tomorrow, a government that recognises that we do have a patchwork economy, a government that recognises the size of the mining boom but also that there are a great many businesses in this country that are doing it tough, we know that Austra­lia has a wealth of minerals and resources and we know that the boom in resource prices we are currently receiving is a once-in-a-generation opportunity. That is why the government will be introducing the minerals resource rent tax, which is about spreading the benefits of the boom so that the broader economy can benefit.

Let's recall what that tax will fund. It will fund a cut to company tax for all companies, including a head start for small business, a new tax break for small business investment in our regions, particularly in the mineral rich states of Western Australia and Queens­land, and a boost to national savings. This is about strengthening the economy and better preparing Australia to respond to any external shocks. It is a plan to deal with the pressures of the patchwork economy.

It stands in stark contrast to those opposite, who have no plan other than a plan to say no. This is a coalition that is arguing against a tax cut for Australian companies, including manufacturing, that is arguing against a tax cut with a head start for small business, that is arguing against more super­annuation for working Australians and that is arguing against investment in our regional infrastructure. At a time when we see the sorts of profits the resource sector is earning, this is a coalition that wants the mining sector to pay less tax and small business to pay more. (Time expired)

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister further outline to the Senate the importance to all Australians of introducing new taxation arrangements for Australia's resources and is the minister considering alternative approaches to respond to the resource boom?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Ensuring the Australian people and the whole of the economy receive some of the benefits from the mining boom is good economic policy. It is about securing Australian jobs. Those of us on this side will back Australia's manufacturers and Austra­lia's small businesses by ensuring we deliver a lower company tax rate.

But what do we have from the opposition? The Leader of the Opposition says that the mining tax is 'a dagger aimed at the heart of the Australian economy'. The only dagger aimed at the heart of the Australian economy is the relentless negativity and the economic incompetence of the Leader of the Opposition, who is seriously saying to the Australian people: 'We want mining compa­nies to pay less tax. We want Australian manufacturers and Australian small business to pay more tax. We are opposed to more superannuation savings and we are opposed to regional infrastructure.'

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supple­mentary question. Can the minister outline to the Senate why it is important to deliver reforms in this area in a manner that is consistent with a credible and transparent fiscal policy?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Fiscal policy and having certainty around fiscal policy are important. That is why the government is delivering these reforms, consistent with a clearly articulated fiscal strategy. What we have seen from the opposition in recent days is really quite extraordinary. We have seen the shadow Treasurer make public—apparently because it was a smart tactic, according to a report in the Australianthat the coalition intends to find $70 billion worth of savings, just to get up to the starting line, to make up for their election black hole and all the promises Tony Abbott has made since then. Mr Hockey said that, and it was confirmed by Mr Robb. So we have the shadow Treasurer and the shadow finance minister saying, 'Yep, it is $70 billion.' Today we see Mr Abbott trying to wriggle out of the $70 billion. He has described it—a figure put out by his economic team—as a fanciful figure. This man is an absolute economic illiterate. (Time expired)