Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Evans. Can the minister advise the Senate how the minerals resource rent tax is essential to delivering the long-term dividends of this mining boom to all Australians?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank Senator Sterle. I know he is a strong advocate for the mining industry but also a strong advocate for the rights of Australian people to benefit from it.

The MRRT is a historic reform which will strengthen Australia's economy and benefit all Australians. It will mean, for the first time, Australians will see a fair share of the money raised from the sale of resources that belong to them. These benefits will see 2.7 million Australian businesses get a tax break, they will see eight million Australians get a boost to their superannuation, they will see a further superannuation contribution for our lowest paid workers and they will see investment of billions of dollars in roads, bridges and other critical infrastructure.

The MRRT will apply to highly profitable miners who have benefited enormously from the current resources boom, earning profits of nearly $100 billion in the year to June. What we are saying is that Australians deserve to participate in those record profits. They all deserve to get a share of those profits. The benefits of the boom ought to be spread across Australia, not just to those who have shares in the large mining companies, not just to those who work for them, but to all Australians. It is not unreasonable taxation but a share of the super profits at a time when the resources sector is booming.

Small businesses and working people in this country who are not associated with the mining industry will get a long-term benefit—a benefit to business through reduced tax and a benefit to the workers through superannuation which will allow them to have a larger retirement income. There will be a long-term benefit to all Australians in profiting from the mining boom and sharing in the profits of those mining companies. This is good policy, it is fair policy and it invests in the long-term future of Australia, and I would urge the opposition to get on board with what is important economic reform. (Time expired)

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

I thank the minister for that answer. Mr President, I ask a supplementary question. Minister, are you aware of claims that some highly profitable mining companies will avoid paying the MRRT?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I am aware of a report by a Western Australian accountancy firm claiming that Rio Tinto and BHP will not pay any minerals resource rent tax. It is a report commissioned by Mr Twiggy Forrest, Australia's richest man, who earlier claimed this tax was going to kill the industry, that it was economic vandalism and that he would be destroyed. Now apparently it is not going to have any impact at all.

Mr Forrest's company today admitted that despite having a market capitalisation—

Opposition Senators:

Opposition senators interjecting—

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

Senator Evans, you just might resume your seat. It is very difficult to hear you because of the noise on my left. Order!

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr Forrest's company, FMG, admitted today that despite having a market capitalisation of $50 billion they had not cut a corporate tax cheque to date. They have not paid a dollar in company tax to date and they want to resist having to pay the minerals resource rent tax. A large mining company owned by Australia's richest man will not pay tax. That is not something the Australian people should accept. (Time expired)

Opposition senators interjecting—

Government senators interjecting—

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

Order! If you want to wind down question time, it is in your hands. When there is silence on both sides we will proceed.

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

I do thank the minister. That is very, very interesting. Mr President, I ask a further supplementary question. Minister, are you aware of any alternative policies or risks to delivering the long-term dividend from the mining boom to all Australians?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

It appears that the opposition, while not having an alternative policy, intend to roll back this reform as well. Not only are they going to roll back the compensation to people as part of the carbon tax but they are also going to roll back the superannuation, the company tax—all those benefits that come from the mining boom. They are going to roll those back and give them back to the mining companies. That is what they think they are going to do.

They have decided that the superannuation thing might be a bit hard, so they have changed their mind on that, but they are not quite sure how they are going to pay for that. They have $70 billion of budget cuts to make and they are throwing this on top of that—they have the cost of all this rollback—all to make sure that Australia's largest mining companies do not pay tax on super profits, all to make sure that the Liberal Party can say to the miners: 'We're not going to make you pay tax on super profits. We don't think the Australian people should benefit from the boom.' Shame on the opposition! Shame on you! That is not good policy. (Time expired)