The PRESIDENT (Senator the Hon. John Hog g) took the chair at 10:00, read prayers and made an acknowledgement of country.
The evidence is inarguable that Australia is becoming too expensive and too uncompetitive to do export-oriented business.
Africans want to work, and its workers are willing to work for less than $2 per day. Such statistics make me worry for this country's future.
She wants to be a bigger welfare recipient herself … She's against social welfare but she's very much in favour of business welfare for herself … I think that's an appalling double standard, there is no bottomless pit of money and that should apply to Gina as much as the people she's bagging today.
Everyone who has been a small business person knows what a hassle it is to trace, over the life of an asset, the deductions that have been made in previous years and the statutory accelerated depreciation rates and to make small deductions over a number of years. Making a single big deduction in the year that it is purchased is simple. It relieves business of all the paperwork, it reduces the costs they have to pay to their accountants and it gives them more time in their businesses—less money to the accountants and more money for reinvestment.
What it does do is provide the essential lubricant for small and medium business people in particular to be able to grow and expand their businesses, and that is access to a greater degree of cash than they otherwise would. And we should not underestimate that, because if they are not getting cash through a measure like this then most of them are having to go out there and borrow on the markets and pay the relevant interest rates and the like on cash and put up further assets as security et cetera. So, it has a beneficial impact not just in providing a mechanism by which they can fund business growth and expansion; it also avoids those businesses having to further mortgage or further put up security in order to access the cash they need for those purposes.
For the income earned by an industry to generate jobs in Australia , it has to be spent in Australia. And our mining industry is about 80 per cent foreign-owned.
… … …
For our economy and our workers to benefit adequately from the exploitation of our natural endowment by mainly foreign companies, our government has to ensure it gets a fair whack of the economic rents those foreigners generate.
This, of course, is the justification for the minerals resource rent tax. And the fact that, so far, the tax has raised tiny amounts of revenue doesn't mean mining is no longer highly profitable, nor that the tax isn't worth bothering with.
Because Labor so foolishly allowed the big three foreign miners to redesign the tax, they chose to get all their deductions up-front. Once those deductions are used up, the tax will become a big earner. Long before then, however, Tony Abbott will have rewarded the Liberal Party's foreign donors by abolishing the tax.
This will be an act of major fiscal vandalism, of little or no benefit to the economy and at great cost to job creation.
The miners made combined half-year profits of $US14.58bn, compared with $US8.04bn a year earlier, a period in which the iron ore price crashed to as low as $US87 a tonne.
At the end of the motion, add:
"but the Senate calls on the Government to recognise that the benefits of the mining boom should be enjoyed by all Australian society by:
(a) applying a 40% tax rate to all minerals,
(b) rebating only those royalties that were in place at July 2011, and
(c) allowing depreciation on the book value of the amounts actually spent on mining infrastructure only."
At the end of the motion, add:
"but the Senate is of the opinion that the repeal of the Low Income Superannuation contributions should not be concealed in this legislation as it will:
(a) diminish, by around $27,000, the retirement savings of one in three Australians,
(b) negatively impact on almost one in two working women and 80 percent of women who work part time, and
(c) will place further pressures on future governments due to increased costs to the aged pension."
… one of the top sovereign-risk countries in the world on the basis of government policy and its demonstrated behaviour in terms of taxation policy and its inconsistency in policy.
The design of the MRRT is flawed. There will soon be two different types of mining tax regimes in place. Indeed, while companies subject to the MRRT receive a refund from the Commonwealth Government on the State mining royalities that they also pay, the administrative and compliance costs of two different mining tax regimes are far higher than they should be.
Can I stress that $100 million will be private sector investment, not State Government or taxpayer funded.
… could not expect to take away a region's resources without leaving something for the community ... and had a responsibility to contribute to the specific infrastructure provided to meet their needs.
The current … arrangements distort investment and production decisions, thereby lowering the community's return from its resources.
Both externally and internally, climate change is widely regarded as both a serious and inherently intractable problem.
… this package as a whole transfers income from something like 10 million Australians, including the poorest … The main beneficiaries … are a handful of foreign owned corporations that are collectively worth $200 billion.
… if we win the next election and if I'm the Attorney-General in an Abbott Government, one of my first priorities will be to remove … the Racial Discrimination Act, the provisions under which Andrew Bolt was dragged before the courts …
… what I wouldn't like to see is a regression that allows those who have bigoted viewpoints to vilify any group of people at all …
It’s very difficult to imagine Heffernan didn’t offer these views to Credlin and Tony Abbott,
As previously indicated, the government firmly believes that our one million job target can be met …
That the Senate take note of the answers given by the Assistant Minister for Health (Senator Nash) to questions without notice asked by Senators Sterle and Lines today relating to charges for medical services.
The co- payment Mark I of $2.50 (which in today's money is just over $4) was used as a bargaining chip by then leadership challenger Paul Keating, in his importuning of recalcitrant Labor backbenchers.
Perhaps it was sweet revenge that after Bob Hawke humiliated Keating in 1985 by nixing his consumption tax, Keating was able to return the favour by scrapping Hawke's co-payment.
When it comes to the Labor Party, politics trumps economic reality every single time.
That the Senate take note of the answer given by the Minister for Employment (Senator Abetz) to a question without notice asked by Senator Hanson-Young today relating to a visit by the Prime Minister to Papua New Guinea.
That the following general business orders of the day be considered on Thursday, 27 March 2014 under the temporary order relating to the consideration of private senators’ bills:
No. 30 Privacy Amendment (Privacy Alerts) Bill 2014
No. 29 Environment Protection and Biodiversity Conservation Amendment Bill 2014.
That leave of absence be granted to the following senators:
(a) Senator Cash for today, for personal reasons; and
(b) Senator Johnston for 24 March, 25 March and 27 March 2014, on account of ministerial business.
That Senator McLucas be granted leave of absence for the period 24 March 2014 to 27 March 2014 inclusive, for personal reasons; and that Senator Pratt be granted leave of absence for the period 24 March 2014 to 27 March 2014 inclusive, for electoral reasons.
That Senator Ludlam be granted leave of absence for the period 24 March 2014 to 27 March 2014 inclusive, for electoral reasons.
That the following matter be referred to the Foreign Affairs, Defence and Trade References Committee for inquiry and report by 15 May 2014:
Australia's future activities and responsibilities in the Southern Ocean and Antarctic waters, including:
(a) Australia's management and monitoring of the Southern Ocean in relation to illegal, unreported and unregulated fishing;
(b) cooperation with international partners on management and research under international treaties and agreements;
(c) appropriate resourcing in the Southern Ocean and Antarctic territory for research and governance; and
(d) any other related matters.
Pursuant to standing order 75, I propose that the following matter of public importance be submitted to the Senate for discussion:
The failure of the Abbott Government to release recommendations of the Commission of Audit and reveal its program to savage cuts to the Australian people.
... there is no express reference to tax expenditures, and secretariat Peter Crone has confirmed that it will not deal with them.
... the generous tax treatment of discretionary trusts (family trusts) is not included in the tax expenditure statement… The negative gearing loss on rental properties and share investments is not included either. For 2012-13, the Commonwealth has around 280 tax expenditures ... worth around $100 billion. This is around 6% of GDP. Direct expenditure of the Commonwealth for the same period was around $360 billion, which is around 24% of GDP.
The daunting strategic task facing Abbott and Hockey now emerges: they seek to impose off the Audit Commission a vast fiscal and public sector efficiency reform on an economy that is fragile and facing great investment uncertainties.
Australia faces the challenges of an ageing population, poor productivity performance, a persistently high Australian dollar, high energy costs, heavy reliance on the resource sector, and a volatile global political and economic outlook.
The cupboard is bare, there is no money left in the till.
"There is a need for greater workforce flexibility and mobility so that resources can be readily redirected to areas of highest priority—by removing restrictive workplace practices which add unnecessary costs without delivering improved output …
"Industrial relations and enterprise bargaining arrangements should not fetter the ability of managers to manage."
The poles and wires transmissions stuff, I believe, should be owned by the people because they are natural monopolies …
My vision for the electricity sector is that we have a government-owned, world's best practice, efficient operation owned by the people of Queensland. That is what I would like to see.
So let me be absolutely clear today that we decided to not consider divestment of Energex, Ergon or Powerlink to pay down the debt … and we certainly will not be seeking any mandate to undertake a sale of those assets at the next election.
On 8 March, I led the Australian delegation to the 58th Session of the United Nations Commission on the Status of Women (the Commission) held in New York. The Commission takes place annually to evaluate progress on gender equality and to identify critical and emerging issues and challenges.
Australia's high level participation at the Commission sends an unequivocal message confirming the Australian Government's strong commitment to women's empowerment and equality domestically, regionally and internationally.
Australia's recently appointed Ambassador for Women and Girls, Natasha Stott Despoja, accompanied me as a valued member of the delegation and we jointly advocated Australia's priorities at the Commission.
Australia's decision to appoint an Ambassador dedicated to promoting women and girls' human rights globally reflect our deep commitment to gender equality and women's leadership in particular.
I believe it is incumbent upon all people fortunate enough to live in free and democratic societies to do what we can to speak out to protect the human rights of women and girls.
Each year, the Commission aims to establish a set of global standards and formulate recommendations for governments, intergovernmental organisations (including in the UN system) and civil society to promote gender equality and the advancement of women worldwide.
The priority theme for the Commission this year is "Challenges and achievements in the implementation of the Millennium Development Goals for women and girls". This year's Commission comes at an important moment in the lead-up to the elaboration of the post-2015 development framework. I joined other global leaders in reflecting on the challenges and barriers in implementing the Millennium Development Goals and ensuring gender equality remains a key priority as we shape the post-2015 development framework.
Australian priorities for the Commission on the Status of Women
As head of the delegation, I delivered a statement to the Commission on behalf of the Australian Government which outlined the Government's unwavering commitment to promoting gender equality and women's empowerment.
Australia is advocating for a 'twin-track' approach to the post-2015 development framework that:
Australia again confirmed to the Commission that we have zero tolerance for violence against women and girls both domestically and internationally.
We have joined international action against harmful traditional practices including, child, early and forced marriage, and female genital mutilation.
125 million women and girls have undergone FGM and 2 million babies are born to girls under 15 each year.
These are critical issues that must be addressed, domestically and internationally, and we must continue to ensure they are not swept aside. There is simply no excuse for any form of violence against women and girls.
Australian activities at the Commission on the Status of Women
Whilst in New York I met with many of my counterparts from around the world. These included our Indo-Pacific neighbours and also Indonesia, New Zealand, Japan, Philippines, Republic of Korea, Samoa, Timor Leste and Tonga. I also had meetings with many of my counterparts outside our region, including Canada, Denmark, Liberia, Netherlands, Norway, Turkey, United Kingdom and the United States of America.
Other meetings included discussions with senior United Nations officials who are seeking to mobilise the UN system to empower women and to overcome the scourge of violence against women, including the heads of UN Women, the UN Population Fund, UN Development Program and the Special Representative on Sexual Violence in Conflict, Ms Bangura.
In addition to sharing success and challenges in our domestic work to achieve gender equality, we discussed how we could work together to ensure a successful outcome at the Commission and on gender equality issues more broadly.
I also participated as a panellist in a number of events, speaking on a range of issues, including women, peace and security; women's economic empowerment; education; violence against women and women's priorities in the Pacific.
I was particularly pleased to launch the Australian Chapter of the Women in Public Service Project on 12 March. I look forward to the contribution this project will make to ensuring Australia is a place where women participation equally in public life and where this goal is also supported in our region.
Australian Delegation to the Commission on the Status of Women
In addition to Natasha Stott Despoja, I was also joined by:
The professional input of the Australian delegates was invaluable in providing expert advice to government on the priority and reviews themes during negotiation of the agreed Conclusions; and liaising with other civil society advocates both on the ground in New York and in Australia.
The strong Australian civil society presence at the Commission is vital in ensuring critical and emerging issues relating to gender equality and women's advancement will remain at the forefront of international policy discussions.
Conclusion
The extent of the challenge to achieve greater empowerment and equality for women and girls domestically, regionally and internationally continues to be vast. However, the Commission understands Australia is committed to working with others to advocate against the inequalities faced by women and girls and to entrench their human rights.
It was clear that we must continue to work together to support progress on the Millennium Development Goals, particularly in the Indo Pacific region.
Globally inequality persists across many countries and women continue to face discrimination in access to education, work, economic assets and participation in government and commerce. Violence against women remains pervasive and continues to undermine efforts to reach our stated goals.
Without addressing gender inequality in all its forms, we cannot expect meaningful progress in other spheres of development. The Australian Government will continue to support and advocate for the rights of women and girls to be fully respected and promoted in a proactive way that reflects Australian values and interests.
I am determined that this Government's commitment to gender equality remains resolute and unwavering.
That the Senate take note of the document.
R eturn to Order ( pursuant to Senate standing order 166 )
Education—Heads of Agreement on National Education Reform—Order for Production of Documents—Letter to the President of the Senate from the Minister for Human Services (Senator Payne) responding to the order of the Senate of 17 March 2014 and raising a public interest immunity claim, dated 21 March 2014. [ Received 21 March 2014 ]
That the Senate take note of the response by Minister Hunt to the resolution of 4 March on the shark cull.
That the Senate take note of the document.
We'll be getting our report on the Victorian economy; we'll be getting it in about 10 days' time, so early in March we'll have some announcement to make …
Rural and Regional Affairs and Transport Legislation Committee—Report—Land Transport Infrastructure Amendment Bill 2014 [Provisions]
Economics Legislation Committee—Report—Qantas Sale Amendment Bill 2014 [Provisions]
That—
(a) Senator Carr be discharged from and Senator Pratt be appointed to the Economics References Committee; and
(b) Senator Carr replace Senator Pratt on the Economics References Committee for the committee’s inquiry into Australia’s innovation system, and Senator Pratt be appointed as a participating member.
That this bill may proceed without formalities and be now read a first time.
That this bill be now read a second time.
The changes proposed in this bill, the Export Market Development Grants Amendment Bill 2014, deliver on the coalition's pre-election commitment to progressively restore funding to export market development grants starting with an initial $50 million boost.
The export market development grants program provides funding for the partial reimbursement of eligible export marketing expenditure for small and medium enterprise exporters. These grants assist small and medium sized enterprises to enter new export markets and become self-sustaining exporters.
The 2013 Mid-Year Economic and Fiscal Outlook allocated an additional $50 million over four years. The associated policy changes required to give effect to this provision, as well as some additional administrative enhancements to the scheme, are contained in this bill.
This increased funding of the Export Market Development Grants Scheme is designed to progressively restore the funding to the scheme, which had been cut by $25 million per year by the previous government, and thereby, seek to boost Australia's manufacturing and services export base.
This cut that was witnessed under the previous administration says much about Labor's lack of feel for small and medium businesses. It shows that they were more interested in meeting a political objective than in supporting the engine of growth that small and medium business is in this country.
To achieve the objective that we have set, to increase the manufacturing and services' export base, the bill increases the maximum number of grants per applicant from seven to eight, and reduces the required expenditure threshold to qualify for a grant from $20,000 to $15,000. Based on the profile of last year's applicants, this will enable hundreds of extra small businesses to benefit from the scheme. Currently the export market development grant does not reimburse the first $5,000 of an eligible claim; this will drop to $2,500—around 85 per cent of export market development grant recipients will receive an extra $2,500 per grant as a result.
To illustrate what this means:
A new business with a unique product that has only had a market overseas and is looking for their first sale and is spending just $15,000 on export promotion will now get a $5,000 grant. Previously they would have received nothing;
An experienced exporter who has received the maximum seven grants in the past, but whose export business had dried up due to the high exchange rate, for example, will now be eligible to apply for an eighth grant to help try and recover those markets now that, say, the exchange rate is improving, of up to $150,000. Previously they would have received nothing.
The improvements the coalition is making will benefit many small business exporters in rural and regional areas. Businesses like:
Wrightcom Australia, exporting agricultural equipment from near Echuca;
Carbon Revolution from Waurn Ponds, exporting premium-priced carbon fibre wheel rims;
Ramler International from Cheltenham, providing seating products to a global customer base that's included the London Olympic Village, US airports and hotels; and
The Angus Society of Australia, promoting beef exports from Armidale in New England and hundreds more are now eligible for higher grants and more grants than have been provided previously.
It is in line with the coalition's overarching economic objective to remove from centrestage unsustainable government spending, endless and economically damaging rule changes and new taxes, and replace that with robust growth of the private sector, to back our strengths in doing that. Small and medium enterprises are the engine room of the private sector. They are historically the greatest source of innovation in our community. They need to be unshackled from the endless rule changes, the high taxes such as the carbon tax, and they need us, where we can, to give them the assistance to break into new markets. They have not got the infrastructure, they have not got the experience, they have not got the opportunity, they have not got the resources, to go to some of these foreign markets. And to achieve success, to penetrate these markets in an informed way, providing some small measure of assistance has proven enormously successful. This is probably the most successful small business program that we have witnessed over the last 10 or 20 years. This Export Market Development Grants Scheme has been demonstrably successful. It has delivered a massive dividend to the Australian taxpayer. This measure of support gives not only some support. It gives hope. It gives a sense of partnership, in that these people are taking a risk, going out there and risking a lot of their own funds, and they are getting some measure of support from the community. These are elements that are very important if we want to ensure an export-led growth by small businesses, if we want to get trade and investment as a leading edge of sustainable economic growth and sustainable jobs.
The government is seeking to introduce this bill now to address urgently the need to boost Australia's manufacturing and services export base as rapidly as possible and to provide certainty for small businesses as they consider their export marketing plans into the future.
I commend this bill to the Senate.
Since the mining sector in Australia is majority foreign owned, most dividends and retained earnings accrue to foreigners and therefore do not add to national income.
It is a campaign heavy on hyperbole and emotive rhetoric and light on facts. It is a political campaign dressed up as investment advice.
This legislation is yet another example of this Government introducing new taxes on the few productive industries we have left in Australia, thereby inhibiting their development
The Government should try to remember , in the whole debate about oil exploration—it seems entirely blind to this—that we have to compete with other countries …
Again, a multinational company looking to expend dollars on oil exploration is going to do so in a country with a better cost structure and therefore the potential for a better rate of return than Australia has.
I think it is an ideological proposal which is going to do very real damage to oil exploration in Australia. It is going to affect our balance of payments situation and it is going to affect the overall state of our economy. If this is to be one of the pieces of legislation which will form the general epitaph of the Government, I think it is highly appropriate. It is an anti-production, anti-development, anti-profit and anti-export tax …
… has been administratively onerous and costly as well as ineffective, falling significantly short of delivering the genuine tax reform needed to ensure Australia's continuing international competiveness.
Mr Shorten … appeared to change his language around whether Labor would continue to support the tax.
… we will engage in a dialogue with the resources sector.
There are tens of thousands of people who will lose the income support bonus, and I do not suppose that any of them will be very happy to lose it.
But this idea that the children of veterans are somehow being singled out for mistreatment by government is simply false. … It is an outrageous smear …
The low income super contribution operates as a tax offset, effectively refunding the contribution tax paid by low-income earners on their superannuation guarantee and other concessional contributions up to $500 per annum, thus allowing low-income earners to accrue a tax concession on their contributions like all other income earners.
I remember travelling throughout Western Australia in 2010 for that last election. If someone were a visitor to these great shores from another country and they had the misfortune of having to listen to the unfolding Liberal campaign of what they were not going to do should they gain government—it really makes me wonder—they could walk away and think, 'How did this country ever make it into the OECD?' It really was ridiculously embarrassing, but that is history and we had to put up with it.
… ensure that the Australian community receives an appropriate return on its non-renewable resources.
Many countries, particularly those dependent upon single finite resource commodities, already have such funds—globally they are estimated to hold up to $4 trillion in assets.