Key senators to be targetted in mining tax
The Abbott Government plans to target individual senators to convince them to dump the mining tax and $17 billion in spending programs attached to it.
In a sign the Government recognises it may take time to ditch the tax, Treasurer Joe Hockey said yesterday individual talks with independent senators would be necessary.
It comes after last week's vote in the Senate where the repeal was supported but only if key spending programs were kept.
The Government refused to accept these amendments.
As _The West Australian _revealed this month, Palmer United Party senators have made clear they will support the mining tax repeal only if measures including the SchoolKids bonus and low- income superannuation contribution are kept.
A slowdown in the increase in the superannuation guarantee, abolishing the income support bonus, ending the company loss carry-back program and cutting the instant asset write-off for small business are also tied to the mining tax abolition Bill.
The Government puts the total extra spending attached to the tax at $17.2 billion over the next four years. It does not include any offsets from mining tax revenue.
Already the Government estimates the Budget is $1.4 billion worse off since last year's election because of the retention of the mining tax and its spending programs.
Mr Hockey said the Budget would be in much worse shape if the mining tax was not abolished.
"We're going to have to because ultimately the impact on the Budget is so significant of a failure to pass the repeal of the mining tax package that we need to get it through - we must get it through," he told ABC Television. "Clearly, the Labor Party and the Greens don't respect the mandate and the will of the Australian people, but I'm hoping that independent senators together with the PUP will."
There is pressure in independent senator circles for the Government to split the mining tax abolition Bill, enabling the independents to get rid of the mining tax and negotiate with the Government over spending initiatives. But the Government has always maintained that its intent is to get rid of the mining tax "package".
