BEAUMONT: Prime Minister, thanks for your time. Good morning.
PM: Good morning.
BEAUMONT: So you want us to believe that this is a new day, we have a new leader, this is a new era. You're asking us to forget about all that earlier policy on the mining tax?
PM: Well I am asking people to have a good hard look at the breakthrough that we made last night, the agreement that we've signed with some of our biggest resources companies, and our new Minerals Resources Rent Tax which we believe will mean we can all move forward. The nation can move forward, mining companies, mining communities, workers with increased super, and other businesses with lower company tax and some small business breaks as well.
BEAUMONT: So is that the new slogan, the campaign slogan? Moving forward is it?
PM: Well I just think it is a moment where I'm obviously very happy to see that we've managed to get people round a table. We kept them in a windowless room for a fair old period of time. Wayne Swan of course came back from the G20, so he literally went from a meeting with world leaders to a meeting with mining industry leaders. And I'm really pleased that we've sorted it out.
BEAUMONT: You're asking us to move forward, but every single person listening today knows that you, Kevin and Wayne came up with super profits in the first place. That was your idea wasn't it?
PM: Look, I take my fair share of the responsibility for the good things and the bad things that happened under the Rudd Government. I was vice-captain of the team. So I'm happy to be judged by that. I'm also asking people to look what I'm doing as captain of the team. And as captain of the team, we've been able to get goodwill and respect back into the conversation with our mining companies about taxation for the minerals industry. And here we are with a breakthrough and a new agreement, and I'm very pleased that we were able to create a bit of goodwill, and now we're building on that goodwill.
BEAUMONT: So what are you saying? The captain- you were the vice-captain of the team, the captain of the team Kevin Rudd stuffed this up did he?
PM: Look, I'm not going to reflect on the past. I'm all about what we've achieved last night and announced this morning and where it takes us from here. And where it takes us from here- and the significant thing I think for Australians is not analysing who did what, when- but rather looking at the result and saying what does it mean for me. Well, if you're in a mining community, obviously we've got the infrastructure fund. Working Australians, we're going to take superannuation from 9% to 12%. If you're running a business, big or small, reduced company taxation and some special breaks for small businesses.
BEAUMONT: If your tax take PM is reduced now, if it is no longer $9 billion out of the mining sector- if it's something less than that- how can you possibly fund the increase in super contributions to 12%?
PM: Well look, we've cut our cloth here. The original version of the resources super profits tax had us getting about $12 billion in revenue over the forward estimates, so that's four years of budgeting. This new arrangement gives us $10.5 billion, so we have taken $1.5 billion out of expenditure. What we're not proceeding with is we're not proceeding with a resources exploration rebate that industry basically told us they didn't want. And the company tax is now going to 29%, whereas the original plan was to take it to 28%. So we're making sure that it all balances up, and the Budget will come to surplus in 2013.
BEAUMONT: Alright, so there's still $10.5 billion if the flow-through still happens. One of the concerns I've read about this morning is that mining companies will be able to write-off some of their assets to a different value. They'll be able to, on paper at least, change their bottom line, so your tax take may be reduced. Are you concerned about that?
PM: Well we worked this through, obviously with representatives of mining companies. There are a number of very technical elements in this package as you would well imagine. But what we're going to do from here having signed Heads of Agreement so everybody's clear about the principal features of the Mineral Resource Rent Tax is we're going to have an implementation committee chaired by Don Argus, who of course is known in Australia for his own work and career in the minerals area. He will be working alongside our Minister, Martin Ferguson. They'll be guiding every aspect of the implementation.
BEAUMONT: Alright so- alright, so you're assuming it will all flow-through and the numbers are fulfilled.
PM: Well look, we've worked, I don't want to give-
BEAUMONT: Something has to give though, doesn't it? Something like an infrastructure project has to give?
PM: I don't, I don't want- sorry, I don't want to give you the impression that, you know, we've just, you know, sat with the back of an envelope and done the numbers, of course we've worked in a very, very detailed way with the biggest mining companies in this nation- where they've been very, very open about the information and the way in which their businesses work and consequently what revenue can be earned from different tax arrangements including this one. And then of course our own Treasury has worked on these figures as well.
BEAUMONT: Well look, I'm not disputing that. It's a fair question- for eight weeks we've been sold this super profits tax and we needed that $12 billion to fund infrastructure projects and the super contributions in Australia- you're saying you'll still be able to fulfil the super part of that formula, that equation. Something must give in infrastructure then?
PM: No, the-
BEAUMONT: Does it mean that Western Australia will not be able to fund some of their infrastructure projects?
PM: No, the infrastructure is the same. The resources super profits tax basically had $12 billion of revenue raised, and effectively $12 billion of expenditure. Now we are raising $10.5 billion of revenue, and so we've cut our cloth so there will be $10.5 billion of expenditure. What's gone out of the package- number one, an exploration rebate that the minerals industry told us they did not want. And the second thing that's gone out of the package is instead of the company tax rate going from 30 to 28, it will go from 30 to 29. That's what makes it balance at $10.5 billion. So the other things in the package, the infrastructure, the superannuation, the small business arrangements and tax breaks, those things are the same.
BEAUMONT: You're clearing the decks now on different policies. This was the main one. The other important policy that Australians wanted to hear you talk about and West Australians in particular, because a lot of this happens offshore for us, is changes to border protection and asylum seeker policy. When are you going to announce changes to that?
PM: I understand that people are very concerned about boats being intercepted to our north. And obviously in Western Australia, people are particularly concerned. And I've said I share those concerns. I can understand why it worries people and causes anxiety. I am going to have something to say about that area in coming days. Obviously one short week ago I became Prime Minister of this country, sworn in by the Governor-General in the middle of the day. My first priority has been to deal with the question of taxation for the resources industry. I thought the uncertainty wasn't doing anybody any good. And so we've worked through that, and it's been a lot of work and we've had this breakthrough. Now everybody can move forward with certainty and with goodwill. And I will be continuing to govern and to work my way through the issues that are causing people concern.
BEAUMONT: Alright, so talking about that in coming days, I'm sure our listeners will be very interested in what you've got to say. Thank you for your time this morning Prime Minister.
PM: Thanks very much for the opportunity.