Ann Sudmalis (Gilmore, Liberal Party) Share this | Hansard source

Way back in 2011, when the Prime Minister of the day made a deal with the Greens, the mining tax was introduced. Our booming mining industry had more than 250,000 direct employees at that time. An extra 30 per cent super tax was imposed on top of all their other cost inputs. The Gillard-Rudd government expected $11 billion in revenue. The plan was to use this money—this imaginary revenue—to bolster low-income super, to fund infrastructure and to allow tax cuts. The revenue did not—I repeat did not—eventuate. The money had to be borrowed, the infrastructure investment had to be borrowed, and any minor economic gains to businesses were guzzled by the carbon tax.

Labor sheds tears and expresses mock horror about the effect of the repeal of the mining tax on nine million Australians. It is no wonder our budget is in such a dismal state. Those opposite have no understanding of the impact of the mining tax and the carbon tax. It is those opposite that have punished every single Australian with a tax on electricity, gas and groceries. It is those opposite who at every step put the interests of the Greens ahead of the interests of every Australian. It is those opposite that locked in $17 billion worth of new government spending and promised that it would be entirely paid for from the mining tax revenue. To bring that down to a household level, what the Labor Party have done is the same as spending $10,000 on a credit card even though they only earn 100 bucks a year. It is simply farcical.

This is a government that delivers on its promises, a government that sticks by its word and a government that is passionate about creating local jobs, not punishing businesses for being successful. The repeal of the mining tax is a win for every Australian. It is a win because it is good for investment, good for jobs and good for business. This is not just about a handful of mines somewhere in remote Western Australia. There are over 54,000 people in New South Wales who are directly employed in the mining industry. Mining contributes over $24 billion to the New South Wales economy and paid over $1.4 billion in state royalties last year alone. This does not even include company tax, income tax, payroll tax and so much more.

My electorate extends from the southern fringes of Shellharbour all the way down to the coast, almost to Batemans Bay. In 2012-13 the mining industry invested over $160 million in my community, with the Illawarra coalfields beginning mere kilometres from my northern and western borders and with many people employed at the coalfields living in Gilmore. Over 2,000 people are directly employed by the mining industry across the Illawarra and South Coast, with a total direct benefit to the region of $1.4 billion in 2012-13.

Just before the minerals resource rent tax became law, the previous member for Gilmore held employment forums for unemployed people wishing to get work in the Roy Hill mines. At that stage the company was looking for 8,500 workers. If we had been able to push forward with this after the forums were held, we would have brought the unemployment level in Gilmore down to zero. Yes, I repeat: zero. What stopped this? The mining tax became law and the investment in Roy Hill stopped.

The previous government have no idea what happens when they impose an extra tax on an industry that has long lead times to develop. The industry invest in other nations around the world where they get a better return on their investment and do not have to pay a mining tax. What else would they do? I am appalled at the apparent lack of understanding, yet it does explain why we have billions of dollars worth of debt. Those opposite rail about the changes to low-income superannuation. Have they spoken to the constituents who ask for help to access their super because they cannot afford to survive? We have to have a strong economy so that such people can get a job and earn even greater wages and get extra super. I congratulate the coalition team on repealing this legislation. The changes will inspire our mining industry to reinvest in Australia. All those unemployed who wanted to get work with Roy Hill mines may yet be able to get a job.

The rate of increase in super contributions is reduced, but the Leader of the Opposition, when in government, is quoted as saying that the super contributions supposedly generated by the mining tax would be compensation for the cheaper pay that workers would earn. I for one, right now, would prefer that the people of Gilmore had more dollars to spend in their pockets rather than dollars in their super accounts. We have not damaged any Australians, yet those opposite damaged the economic future for 23 million Australians and their children by their economic ineptitude.

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