Doug Cameron (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Wong. Can the minister outline to the Senate the importance of spreading the benefits of the mining boom to all corners of the economy. What is the role of tax cuts for small and large businesses in delivering these benefits?

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

I thank the senator for his question. Like many in this place—but, unfortunately, not those on the other side—he understands the importance of spreading the benefits of the boom for all Australians. The government is moving to put in place a minerals resource rent tax, the MRRT, with the intention of giving a boost to small business and a boost to the superannuation savings of working Australians. There is an absolute intention by this government to ensure that the benefits of the boom are spread widely. It was with some consternation that we found out today the Leader of the Opposition will be the first Liberal leader in living memory to vote against a tax cut for small business. Sadly, that is how Tony Abbott will go down in history. The party of Robert Menzies, the party of John Howard, which told us that they were the party of small business, will come into this chamber and into the other place and vote against a tax cut for small business. The Liberal Party are the party of wealthy miners, not small business. They are no longer the party of small business. But, even worse, what we are seeing—and I accept the position of the Australian Greens—

Honourable Senators:

Honourable senators interjecting—

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

Order! Senator Wong, resume your seat. There needs to be silence. Minister, continue.

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

Thank you, Mr President. We have heard in recent times the Leader of the Australian Greens put his view as to the party's position. I accept the Greens position; I do not agree with it, but I accept it. I accept that they do not believe in a lower company tax rate. But what is extraordinary is that the Liberal Party are lining up to vote with the Australian Greens to kill a company tax. Who would have thought that the Liberal Party of Australia and the National Party would line up with Senator Brown to try and kill a company tax cut! (Time expired)

Doug Cameron (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister outline to the Senate why it is important for governments to have clear policies and maintain consistency in the delivery of these policies.

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

Unlike those opposite, we are committed to delivering tax cuts to small business and to the broader economy. The Treasurer has released draft legislation today which will ensure that we can cut company tax to help Australian businesses right across the economy including those that are not in the fast lane and those that are facing challenges such as the high dollar. It is legislation that cuts the tax rate for all companies from 30 per cent to 29 per cent for 2013-14 and subsequent income years. And, of course, there will be a head start for small business with the rate applying from 1 July this year—that is, in less than four months time. We on this side understand that this will help small business grow. We understand that the cut in the corporate tax rate is important to increase productivity, to promote broad based economic growth and to encourage more investment and jobs across Australia. But what do we have on the other side? It is interesting. We have opposition yet again— (Time expired)

Doug Cameron (NSW, 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 this government places a high priority on ensuring all policies are properly costed and that all spending commitments are fully funded. Can the minister outline the implications of not being able to properly cost and fully fund policies.

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

If you do not cost your policies properly and you do not fund them properly you cannot deliver them properly—and this is the position in which the opposition find themselves. I feel some sympathy for the opposition backbench, because Mr Hockey and Mr Robb, and presumably Senator Cormann, have got themselves into a position where they cannot find enough cuts to make up the $70 billion black hole and so now they have to impose on their party room a vote with the Australian Greens to kill a company tax cut. That is what they have had to impose on their backbench. One wonders if people like Senator Sinodinos think this is a great idea—for the Liberal Party of Australia to not only oppose a small business tax cut but also seek to combine with the Australian Greens not to allow a company tax cut across the economy.