Assistant Treasurer Bill Shorten does not believe tying up money from the government's proposed mining tax in a sovereign wealth fund is a sensible idea.
The Organisation for Economic Cooperation and Development has previously recommended that Australia should not spend the proceeds of the planned minerals resource rent tax (MRRT), instead placing it in a sovereign wealth fund.
The Australian Greens agree, while opposition frontbencher Malcolm Turnbull believes there should be provisions in the budget to create a fund.
The coalition opposes any sort of mining tax.
But Mr Shorten says proceeds from the mining boom should help the whole economy, and the MRRT will help cut the corporate tax rate, increase superannuation, give tax breaks to small business, and pay for infrastructure.
"I don't agree in tying up our money in a sovereign wealth fund, compared to that more attractive choice, is sensible," Mr Shorten told the National Press Club in Canberra on Friday.
He said there was a "little bit of inner left child" in Mr Turnbull for proposing a sovereign wealth fund.
"Why not trust Australians to invest in their own future, (rather) than thinking in some sort of elitist mentality that a few very wise gentleman, by and large, can do better? I don't," he said.
He said Australia already had a sovereign wealth fund, and it was called its superannuation.
He also pointed out that Future Fund chairman David Murray was the international chairman of the Sovereign Wealth Fund Association of the world.
Source: http://www.smh.com.au
The Organisation for Economic Cooperation and Development has previously recommended that Australia should not spend the proceeds of the planned minerals resource rent tax (MRRT), instead placing it in a sovereign wealth fund.
The Australian Greens agree, while opposition frontbencher Malcolm Turnbull believes there should be provisions in the budget to create a fund.
The coalition opposes any sort of mining tax.
But Mr Shorten says proceeds from the mining boom should help the whole economy, and the MRRT will help cut the corporate tax rate, increase superannuation, give tax breaks to small business, and pay for infrastructure.
"I don't agree in tying up our money in a sovereign wealth fund, compared to that more attractive choice, is sensible," Mr Shorten told the National Press Club in Canberra on Friday.
He said there was a "little bit of inner left child" in Mr Turnbull for proposing a sovereign wealth fund.
"Why not trust Australians to invest in their own future, (rather) than thinking in some sort of elitist mentality that a few very wise gentleman, by and large, can do better? I don't," he said.
He said Australia already had a sovereign wealth fund, and it was called its superannuation.
He also pointed out that Future Fund chairman David Murray was the international chairman of the Sovereign Wealth Fund Association of the world.
Source: http://www.smh.com.au
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