Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

My question is to the minister representing the Treasurer, Senator Gallagher. Minister, what is the contribution made by Australia's resources sector, including coal and gas, to the budget bottom line? How much revenue does it contribute?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I don't have the exact figures at my fingertips, but it is a significant contributor, through company tax and through other taxation arrangements; I don't think anyone is pretending otherwise. In terms of the revenue upgrades that we've seen, and the very welcome revenue upgrades that we've seen to the budget, of which 87 per cent across the last two budgets has been returned for budget repair—of that, about 20 per cent is related to the strong prices that we're getting for commodities. I would say that the other parts, where there is significant contribution to the upward revision in revenue, are because of the strong labour market, the low unemployment rate and the fact that more people are in jobs, which is fantastic, and because we're seeing for the first time in a decade the beginnings of some solid wages growth. We've overturned a policy that the former government had of wage stagnation—determined and deliberate wage stagnation—and we are seeing for the first time good, sustainable wages growth, which is good for working people in this country. We expect—

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Are you seeing real wages growth?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Yes, we will see real wages growth, as foreshadowed in the budget paper, and that is contributing to the revenue upgrades.

Opposition senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Order, on my left! You have one of your senators on their feet. Senator McDonald.

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

On relevance: perhaps the minister could take my question on notice if she doesn't have the answer.

Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

You said you didn't have it.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I said that I didn't have a number for you, but I'm more than happy to find the exact number of how we break down the receipts from company tax, which is essentially what you're asking me to do—to break it down into a subset of a particular industry. I'm happy to do that and come back to the chamber. The point I am making, though, is that, whilst that is a contributor to the revenue improvements that we're seeing in the budget—and we welcome that—there are other factors at play here. One is the fact that we are strongly handling the economy and that we've got low unemployment and strong wages growth, which is also relevant to the budget bottom line. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Are you on your feet, Senator McDonald, for a first supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

Yes. Minister, to what extent is the government relying on the continued success of Australia's resource sector, including coal and gas, to fund the additional spending in the budget? How much revenue do you assess is being generated by iron ore, coal, gas and other parts of the mining sector?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

It certainly makes a significant contribution to receipts, but I don't think anyone has ever said otherwise. It was the same under the former government as it is under us. We've outlined some proposed changes around PRRT going forward, but we haven't changed any of the revenue arrangements that operated under the former government in relation to taxation of those companies that you talked about. I hope that, with PRRT, we would have your support for those changes when they come through this— (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator McDonald.

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

Again, on relevance: if you don't have the answer here in the chamber, could I ask that you bring the specifics back, please, Senator Gallagher?

Sue Lines (President) Share this | Link to this | Hansard source

Senator McDonald, the minister is being relevant.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I hope that, when we bring the sensible and modest changes to PRRT that we've worked on together with the relevant companies, we have the support of the opposition in making sure that those changes get through.

Sue Lines (President) Share this | Link to this | Hansard source

Minister Gallagher, please resume your seat. Senator McDonald.

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

On relevance: could the minister bring her answer back to the specifics of my question.

Sue Lines (President) Share this | Link to this | Hansard source

Senator McDonald, you were on your feet a few minutes beforehand, and I said that I believed the minister was being relevant to the question. I believe the minister is still being relevant, and I'll listen carefully to the remainder of her answer.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

The senator asked what contribution those companies make. I said it was significant. I've answered the question.

Sue Lines (President) Share this | Link to this | Hansard source

Senator McDonald, a second supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

Minister, will you thank coal and gas communities in regional Australia, whose success is providing over a million direct and indirect jobs and billions in taxes and royalties and propping up Australia's economy? Will your government commit to supporting these industries rather than penalising them?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I'm not trying to be negative, but we don't usually go around thanking people for abiding by the law. The budget relies on a whole range of revenue measures. Across the board, I'm very happy to thank every part of the economy that contributes to generating revenue that allows us to provide the services that we need for the Australian people. I'm very happy to do that.

Hon. Senators:

Honourable senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Minister Gallagher, please resume your seat. Order! Minister, please continue.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I think I've answered the question. I am deeply thankful, as the finance minister, for all the revenue that comes to the budget, I can tell you. If we didn't have that revenue then we would be in a very difficult position about ensuring we were funding—

The:

Senator McDonald, a point of order?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

On relevance—I'm wondering if you can say 'coal' and 'gas'.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Watt, I am addressing a point of order. The minister is being relevant, Senator McDonald.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I've completed my answer. I know the game Senator McDonald is trying to play in being divisive, because it's a common tactic. I've already acknowledged the significant contribution that those industries play in generating revenue for the budget. I have done that, Senator McDonald. I hope it makes you happy.