Coalition's tax break for the bush 'ignored'

MANY families in the bush earning under $55,000 a year would have paid no tax if the independents backed the Coalition to form government.

MANY families in the bush earning under $55,000 a year would have paid no tax if the independents backed the Coalition to form government.

Sources involved in the negotiations over who would form government say Coalition leader Tony Abbott did not offer a ministerial position to any of the independents in exchange for their support.

Nationals Senate leader Barnaby Joyce has revealed that the Coalition offered to trial a zonal taxation plan in five local government areas at a cost of about $200 million over two years.

Zonal taxation schemes offer favourable tax treatment to individuals in regional areas with less infrastructure and services.

Senator Joyce slammed Rob Oakeshott and Tony Windsor's decision to back a Labor-Greens government, saying they rejected the Coalition in favour of a "marry me now and I'll love you later contract" with Julia Gillard.

"We put more on the table than had been there for a long, long time," he said.

"Everything we promised during the election campaign, the Coalition plans were then repackaged for the independents and zonal taxation was the new one.

"But the $500m set aside for new water infrastructure, $400m for economic development for distressed towns in the Murray-Darling Basin, getting gas in, building abattoirs and airports, the $1 billion for tertiary education in regional areas, the $600m for regional bridge-building programs -- none of it will happen because Mr Oakeshott and Mr Windsor backed the Labor-Greens team."

In addition, Senator Joyce said, the Coalition's plans for "a $20bn, nationwide infrastructure building program" that would have focused on regional Australia were now scrapped.

"We also promised not to bring in an ETS, which people in regional areas hate because it's just going to make them poorer," Senator Joyce said.

"They have opted for a $43bn (broadband) scheme with a 25 per cent tolerance in costings, which means it could cost $60bn, and it's a scheme that will duplicate what is in cities and people will still miss out in the bush.

"Remember it only serves 93 per cent of the population," Senator Joyce said.

Mr Oakeshott has revealed that Mr Abbott made a last-ditch attempt to woo the independent MP by offering him a senior Coalition position.

But he would not confirm that meant a portfolio in a Coalition ministry.

"It's not for me to break confidences but you should put that question to Tony Abbott," Mr Oakeshott said.

He met the Opposition Leader six times on Monday, and said Mr Abbott "had a cracking last 48 hours in the negotiations".

The independent MP said Mr Abbott's offers got "bigger and better" in the hours leading up to Tuesday's final decision by Mr Oakeshott and Mr Windsor to support Labor.