Question Time

MINING SUPER TAX

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:34): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about the resources super profits tax.

Leave granted.

The Hon. D.W. RIDGWAY: The recently released Henry tax review recommended a resources rent tax for the mining industry targeting its profits obtained from high value resources. In response, the Rudd government has announced the resources super profits tax of 40 per cent on the super profits of the mining industry.

However, in contrast to the recommendation of the Henry review, the federal government's proposed tax is not currently limited to high value resources; rather, it taxes all extractive industries. It is interesting to note that only last week the Treasurer said that it was a win-win tax and now, of course, he is rethinking his position.

The minister would know that extractive industries include limestone, sand, gravel, rock and other materials used by the construction industry, which do not yield super profits to the extractive industries. My questions are:

1. Has the government undertaken any estimates as to what impact the introduction of the resources super profit tax will have on construction industries and projects, in particular housing affordability and the cost of major capital projects, such as the Southern Expressway, the South Road Superway, the new RAH and, of course, the Adelaide Oval upgrade, all of which are significant projects and involve—

The Hon. B.V. Finnigan interjecting:

The PRESIDENT: Order!

The Hon. D.W. RIDGWAY: Mr President, chuck him out or I'll walk over there and pick him up and chuck him out myself.

The PRESIDENT: Order! I'd like to see that!

The Hon. D.W. RIDGWAY: My second question is: what representation has the minister made to the federal government to protect our important extractive industries from this ridiculous tax?

The PRESIDENT: The minister will disregard the opinion in that question.

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Industrial Relations, Minister Assisting the Premier in Public Sector Management) (14:36): Well, there would not be much to answer then, Mr President. To go back to this important matter, my understanding is that the Treasurer will be making a statement on the broad issue of the commonwealth proposal in the other house later on today, and that will set out the government's position.

The honourable member does raise an important matter about what the impact of this tax, if any, will be upon the extractive industries. I have asked my department to investigate this matter, and I have made some inquiries. One presumes that the tax will apply to extractive minerals. However, as I indicated in answer to a question last Thursday, the government will be seeking to get that information from the industries. Clearly, we will be looking for any industry that might be affected by the super profits tax to do their sums.

I had a chance to look at the commonwealth paper over the weekend, and it is a fairly complex document, like all such taxes. It is full of tax credits and so on, and how they operate with various levels of deduction and so on is obviously quite a complex matter to determine. In relation to the extractive industry, as well as other sectors of the mining industry, we are seeking an understanding of the impact upon industry, and we will be making whatever representations are necessary to the commonwealth government in relation to that matter. My department is working on a paper in relation to that issue as we speak and, clearly, we are talking to the industry. That has been my involvement with that matter, and these issues will be taken up with the federal government at the highest possible level.