CQ Federal pollies spinning on tax

CENTRAL Queensland Federal politicians are butting head over the proposed Mining Resource Rent Tax.

Liberal National Party's Member for Flynn Ken O'Dowd has hit out at Labor's Member for Capricornia Kirsten Livermore, and one of her colleagues, for 'spinning' answers on the MRRT and how it will affect Central Queensland  small business.

Mr O'Dowd said Labor continued its fairy tales in question time today stating a mining tax is good for small business, yet it fails to acknowledge that small business will have to pay for the 3 per cent increase in the superannuation guarantee.

Mr O'Dowd questioned how Assistant Treasurer Bill Shorten and Federal Member for Capricornia Kirsten Livermore could say with a straight face that the mining tax would boost small business.

"Ms Livermore and the Assistant Treasurer are away with the pixies putting spin over substance," Mr O'Dowd said.

"The simple fact is that employers will have to foot the bill for the increase in super contributions and at the same time endure increasing operating costs driven up by an increase in the cost of electricity and other costs caused by the MRRT and the Carbon Tax.

"Ms Livermore and the Government have repeatedly tried to mislead people into believing the mining tax would pay for the increase in employer superannuation contributions when it can't."

"No mechanism or trade-off agreement has been put in place to offset this additional payroll expense which leaves small businesses exposed."

"The one per cent company tax reduction to 29% is a good thing but not when it is totally swamped and over powered by costs that small business cannot endure."  Mr O'Dowd said.

"Again, it only goes to show that Labor is totally out of touch with small business and they are clueless when it comes to running the economy." Mr O'Dowd said.

Ms Livermore said Mr O'Dowd was again grasping at straws for reasons to be relevant.

"The Government is committed to its increase of the Superannuation Guarantee from 9 to 12 per cent," Ms Livermore said

"Mr O'Dowd has jumped from one bandwagon to the next in reasons to oppose the Mineral Resource Rent Tax and still his arguments are weak at best.

"The increase in the Super Guarantee will be phased in over a number of years from 2013 to 2019, with the first two steps to be only a quarter of a percentage point.

"What this means for working Australians is a larger superannuation investment and more enjoyment and security in their retirement."

Ms Livermore said the same scare campaign was raised when the Superannuation Guarantee was first introduced by Hawke/Keating Labor Governments; and just as it was when the Petrol Resource Rent Tax was introduced in the 1980s.

"More broadly, the MRRT will deliver greater benefits to small businesses in the form of tax cuts and instant tax write offs up to the value of $6,500 as well as deliver a greater share of our nation's wealth to everyday Australians."

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