More money in retirement and more support for small business

Mark Dreyfus has welcomed the passing of the Minerals Resource Rent Tax (MRRT), and associated legislation through the Senate this week.

Mark Dreyfus has welcomed the passing of the Minerals Resource Rent Tax (MRRT), and associated legislation through the Senate this week.

Mr Dreyfus said the MRRT would provide local workers and small businesses with a fairer share from the mining boom.

"The MRRT is central to the Government's plan to spread the benefits of the mining boom to more Australians and lock in the gains for generations to come," Mr Dreyfus said.

"The Federal Labor Government believes all Australians should share in the benefits of the mining boom, not just a fortunate few."

The MRRT is good for all Australians because it allows the Government to:

  • A major new tax break for 17,800 local small businesses as well as a cut to the company tax rate for all businesses, large and small,
  • A boost to the superannuation from 9% to 12% for 54,200 Isaacs workers, which is projected to provide a 30-year-old worker on average full-time earnings with well over $100,000 in extra retirement savings; and
  • A much needed extra superannuation contribution for 26,600 low-income-earners living in Isaacs.

The passage of the MRRT will help provide Australians with a more secure and comfortable retirement. They will also boost the nation's pool of savings by a staggering $500 billion by 2035, further strengthening our economy.

"The Government has also launched a new website - MoreSuper.gov.au - that allows you to work out what this important reform means for you,"

The site provides a calculator that allows you to enter a few details to find out how much extra in savings you can expect to see when you retire thanks to these reforms."

Unfortunately the Coalition voted against these important economic reforms and Tony Abbott has said he will vote against Labor's tax cuts for all businesses - large and small.

"It is disappointing that Tony Abbott would prefer to give a tax cut to super profitable mining company owners than deliver a tax break to small business and boost the retirement savings of every working Australian."

The revenue from the MRRT enables the Government to increase the Superannuation Guarantee. In the long run, increasing super eases the pressure on the budget by reducing otherwise higher age pension outlays.