Repeal of mining tax blocked in Australia’s Senate

March 25, 2014

The attempt to repeal the Minerals Resource Rent Tax (MRRT) by Australia’s Coalition party was defeated in the Senate by the Labor and Greens partys.

The repeal bill, which also included the removal of low-income superannuation benefits and payments to the children of killed veterans, was defeated in the Senate by 35 votes to 32, The Australian reported.

Scrapping the mining tax was one of Tony Abbott’s major pledges ahead of the September election.

The tax, which levies a 30 percent tax on mining industry super-profits, has raised a fraction of the revenue initially anticipated when it was enacted by the Gillard government in 2012.

Treasurer Joe Hockey said the mining tax was an “abject failure” given it was intended to raise $12.5 billion next year and “is hardly raising anything.”

Speaking in the Senate against the repeal bill, deputy opposition whip Anne Urquhart said the legislation was emblematic of the government’s “utter contempt for Australian workers and Australian families."

“A bill that gives a $3.3 billion tax cut to Australia’s largest mining companies over the forward estimates, while at the same time cutting payments to families, to small businesses and low income earners,” Senator Urquhart said.

Greens leader Christine Milne said the repeal bill was “a blatant favor to the Prime Minister’s big business mates.”


Related article search: