Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Wong. I refer the minister to modelling undertaken by UBS showing that the government's mining tax will raise only $4.8 billion over the forward estimates and not the $13.4 billion the government has asserted in the budget. That is $8.6 billion less than the government has predicted over the forward estimates. How will the government fund its $8.6 billion mining tax budget black hole, which will only continue to grow?

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

First, in terms of the mining tax, the position of the opposition seems variously to be that this is a tax that will end the mining industry and that this is a tax that will not actually raise any money. If it is a tax that will not raise any money, then presumably it will not actually end the mining industry. You cannot even work out which scare campaign is the most convenient, Senator Cormann. You cannot even work out which part of your opposition to this campaign is the most convenient, because you say both that it will end the world as we know it, in terms of the mining industry, and that it will not raise any revenue. I start with making that point, because I think everyone should be very clear about where Senator Cormann is coming from—which is all over the place. He simply wants to say no. It does not matter what the proposition is when it comes to the government's policies. He simply wants to say no. In terms of the revenue that is to be raised—

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I rise on a point of order in relation to the requirement for the minister to be directly relevant. UBS is clearly on to something, because the minister is steadfastly refusing to be directly relevant to the question, which is how the government is going to fund that $8.6 billion shortfall.

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

You are now debating it. I do draw the minister's attention to the question.

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

In relation to the revenue projections, we did revise MRRT receipts in the most recent budget figures. The revision has been to a figure of $13.4 billion over the forward estimates. It is the case, and we have said so publicly, that how much revenue the MRRT will raise will obviously depend on a range of factors, including commodity prices, exchange rates and production volumes. I am also asked about black holes. Senator Cormann should turn around and tell his colleagues how he is going to find $70 billion worth of cuts to services. He asked about black holes. Well, he should know about them. Those on that side—the economic team on the Liberal Party's side, the coalition's side—have done nothing but preside over costings errors and black holes to the self-confessed tune of $70 billion.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given that the minister has just conceded that mining tax revenue will depend on commodity price assumptions, production volume assumptions and various other assumptions coming to fruition, will the government now release all the mining tax revenue assumptions it has used—in particular, the commodity price and production volume assumptions—to estimate its mining tax revenue estimates? Given that the government has so far been desperate to keep these assumptions a secret, what has it got to hide from the Australian people? Is it yet another Labor Party budget black hole?

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

First, breaking news that the MRRT will depend, amongst other things, on commodity prices! That is a really good get Senator; what a get!

Opposition Senators:

Opposition senators interjecting—

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

You would never have noticed that that might have been precisely what we have been saying for quite some time. What is more interesting is the proposition that—

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

Order! I draw the minister's attention to the question. The interjections on my left should stop.

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

What is more interesting is the newfound interest in transparency from a member of the coalition's economic team—the people who use catering companies to do their costings.

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

Minister, I draw your attention to the question.

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

This is from the people who will not commit to using the Parliamentary Budget Office for their costings, the people who had a black hole in their election costings and who now have a $70 billion black hole.

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

Order! Minister, resume your seat. I have drawn your attention on two occasions to the need to address the question. The minister has 18 seconds remaining.

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

Thank you, Mr President—and, with respect, I am answering the question. I was asked about the hiding of information, and I have made clear that we have made public the estimates for MRRT revenue. That is unlike the position of the opposition, who refuse to come clean on which services they will cut to meet their black hole. (Time expired)

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I ask again: given that an independent economic modeller has now revealed that the estimated revenue for the mining tax will be one-third what the government has forecast, how will the government make up the shortfall? Given yet another multibillion-dollar shortfall, how can anyone believe that Labor will deliver on its promise of a $1.5 billion surplus next financial year after a track record of $174 billion of accumulated deficits?

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

In terms of estimated revenue, I again point the senator to the transparent and printed budget documents. The MRRT will collect $13.4 billion over the forward estimates. They were revised down; we were transparent about that, and that transparency is in stark contrast to the way those opposite are hiding their $70 billion worth of cuts. So don't come in here, Senator Cormann, and talk to us about transparency.