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The economy
23 November 2011

NO.143

Joint Media Release with
The Hon Julia Gillard MP
Prime Minister and
The Hon Martin Ferguson AM, MP
Minister for Resources and Energy

Delivering a Fair Return From Australia's Resource Wealth

The Government has secured support for its historic reforms to lock in the benefits of the mining boom and deliver a fair return from the development of the nation's resource wealth.

The Minerals Resource Rent Tax (MRRT) and the extension of the Petroleum Resource Rent Tax (PRRT), which were supported by the House of Representatives last night, will help create a sustainable economy beyond the mining boom and support investment in infrastructure and industries to grow jobs in the future.

The revenue from these reforms will assist businesses, particularly small businesses, that are outside the mining boom fast lane, and fund new infrastructure across the nation to drive productivity and growth.

The proceeds of the mining tax will enable increased superannuation for Australian workers – delivering investment back into Australian companies and Australian jobs.

There's no need for the success of one sector to come at the expense of another. The MRRT and PRRT will use the profits of the resources boom to strengthen our entire economy to the benefit of all Australians.

The Government's resource taxation reforms will support:

  • A major new tax break for Australia's 2.7 million small businesses as well as a cut to the company tax rate for all businesses, with small businesses getting a one year head-start.
  • A boost to the superannuation for 8.4 million workers, which will increase the nation's savings pool by $500 billion by 2035. This will provide a 30-year-old worker on average earnings with an extra $108,000 in retirement savings.
  • A much needed extra superannuation contribution for 3.6 million low-income-earners worth a total of $900 million each year.
  • Critical investment in roads, bridges and other infrastructure, particularly in our great mining regions.

Tony Abbott has opposed this important reform every step of the way, insisting that the benefits of the mining boom should not be shared by all Australians.

Mr Abbott and the Coalition have decided to turn their backs on small business and the broader Australian community who will benefit from these reforms to Australia's taxation system.

The vast majority of those who will be paying the MRRT understand the importance of this economic reform and support it.

We know Australia's resources boom won't last forever. The minerals can be dug up and sold only once.

That's why the Government is committed to ensuring the Australian community receives a fair return from the mining boom and that we lock in the gains for generations to come.

23 November 2011