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. With your indulgence, Mr President, before asking the question, may I join in congratulating Senator Wong on her elevation to the position of deputy leader of the government in the Senate. It is a great personal achievement indeed. Given the Gillard government predicted that its minerals resource rent tax would raise $4 billion this financial year when the Prime Minister and the Treasurer first signed the MRRT heads of agreement, followed by a prediction in the most recent budget that it would raise $3 billion this financial year which in turn was followed by a prediction in the most recent Mid-Year Economic and Fiscal Outlook that the MRRT would raise just $2 billion this financial year, can the minister confirm how much the MRRT has actually raised this financial year so far?

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

I thank Senator Cormann for his kind words—the first part, that is. In relation to the MRRT, it is the case that the government has been upfront about the reduction in revenue from that revenue head, and we were upfront about that at the MYEFO and at the budget. In fact, I think Senator Cormann asked me quite a number of questions about that. Being from Western Australia as he is, he would know the extent to which the spot price has moved over the last 12 months. He would know the very rapid reduction in the spot price that we saw last year. He should also know that, as a profit-based tax, the MRRT—like the PRRT—is relevant to profitability rather than to volume, which is one of the benefits of this design of the tax.

As the senator knows—and I know this because he has talked quite a lot about this and he certainly has tweeted a lot about it—the financial statements we released in December for the first quarter of the 2012-13 financial year showed $501 million collected in resource rent tax. Whilst total resource rent tax revenue is published every month—if you just stop interjecting then I could finish the answer. I am answering the question, but if you want to interject we can just wait. While a total resource rent tax revenue amount is published every month, the advice from the tax office is that it cannot provide specific information about the first instalment revenue of the MRRT without breaching privacy provisions. As the opposition would know— (Time expired)

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

Mr President, I ask a supplementary question. Does the Gillard government really expect people to accept that it can come up with a new tax, make predictions budget after budget about how much the MRRT specifically is expected to raise, spend all the money it thinks the MRRT specifically will raise and more, and then not tell anyone whether the MRRT specifically has or has not raised what the government predicted?

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

This government will not do what is urged by the opposition, which is to break the law. We will comply with the law. As the senator would be aware, the administration of tax law is independent of the government. I would, however, make this point in terms of transparency because that is a relevant point and I know it is something Senator Milne has raised. The government has asked Treasury—

Opposition Senators:

Opposition senators interjecting—

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

Order! If you want to debate it, debate it at the end.

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

I am responding to the issue of transparency because I understand the concerns of senators. The government has asked Treasury to examine ways to improve transparency so that we can monitor whether large businesses are paying a fair share. Senators may wish to refer to the media release issued by the Assistant Treasurer yesterday on that topic. As I have said previously and as the Treasurer has said, the administration of tax law is independent of government. (Time expired)

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

I have a further supplementary question, Mr President. Will the government provide a revised estimate specifically for MRRT revenue in the next budget as it has in past budgets? If it can provide revised revenue estimates, why can it not provide updates on actual revenue collections also specifically for the MRRT?

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

I will repeat this very slowly so that those opposite can understand.

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

There is a difference between estimates and revenue.

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

You asked also about revenue. Your question was first about estimates but then you came back to your specific point and I will respond to that. The ATO has advised that it cannot provide specific information about the MRRT's first instalment revenue without breaching privacy provisions. I know that is difficult for the senator to understand but that is the advice from the ATO.

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

Mr President, I raise a point of order on the requirement to be directly relevant. The minister clearly did not understand the question. She clearly did not understand the difference between revenue estimates as have been published in budget after budget and actual revenue collections. The question was whether the government would do what they have done in previous budgets and in previous midyear economic and fiscal outlooks, and that is publish information about mining tax revenue estimates.

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

There is no point of order. I cannot tell the minister how to answer the question. I believe the minister is addressing the question and the minister still has 32 seconds remaining.

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

Senator Cormann, I invite you to read your Hansard on that question. I was answering the second part of the question. In relation to the first part, the government will update its estimates in the usual way at the next budget.