Mining Tax gone after Clive Palmer does deal with Government

CLIVE Palmer has done a deal with the Federal Government that will tie his vote to repeal the mining tax to other measures such as the School Kids Bonus.

Clive Palmer leaves the PUP offices in Canberra. Clive Palmer and his PUP Senators continue to meet at the barton office block in Canberra. Pic by Gary Ramage

THE Palmer United Party has used its Senate numbers to back the Government’s long-held ambition to abolish the controversial mining tax.

The clandestine agreement was sprung on Labor at the last minute and represents another major demonstration of power by Clive Palmer and his troops.

It is now likely to quickly pass through the Senate and the House of Representatives.

Mr Palmer, who has links to mining enterprises, has long opposed the tax but now has been able to wrap his rejection in a package of support for low income earners.

The PUP deal means a means-tested version of the popular School Kids Bonus will continue, and superannuation support schemes for low income earners retained for 18 months at least.

But the deal means an increase in compulsory superannuation contributions will not rise from 9.5 per cent to 10 per cent until 2021 instead of 2018.

“The mining tax debate has gone on far too long. This is why we have supported the Government amendments,” said PUP Senate Leader Glenn Lazarus in the Chamber.

Labor’s Penny Wong called the amendments, which the Opposition was told about just minutes before they were introduced to the Senate, “another dirty deal” by the Governmemnt.

But Labor and Greens attempts to keep debate running was unlikely to survive against the numbers held by the Government, three PUP senators, and Motoring Enthusiasts’ Party senator Ricky Muir.

The School Kids Bonus will be available to families with an annual income less that $100,000 a year.

It provides $410 for each primary school pupil and $820 for a high school student and this year will cost about $730 million without the means testing.

However, the deal will only be guaranteed under this Government with reviews to be held of most measures by December 2016 — after the next scheduled election.

“It will then be up to the next Parliament and the Government elected at the next election to determine how it wishes to proceed with those measures,” said Finance Minister Mathjias Cormann.

Senator Cormann said the agreement would improve the Budget bottom line by $10 million over the next four years.

Senator Lazarus told the Chamber the mining tax was unfair which diminished Australia’s competitiveness on the world stage.

He said PUP only agreed to back its repeal if the low income superannuation contribution, the low income support bonus, and the School Kids Bonus were retained.

“This is a win for hard working Australians across the country, including single parents, carers, pensioners, low income earners and others who rely on much-needed support to survive,” he said.

“Many women would have been affected by the removal of these important measures. In fact of the 3.6 Australians benefiting from the low income super contribution, 2.1 million are women.”