Mining tax axing faces savings snag

The Federal Government is seeking to ramp up pressure on the Palmer United Party to axe the mining tax, ramming repeal Bills through the Lower House to fast-track a Senate showdown.

But the Government's new tactics face hurdles, with PUP leader and MP Clive Palmer still demanding the Bill to get rid of the tax be broken up to keep key spending initiatives.

In a moment of farce in the House of Representatives, the Government reintroduced its mining tax repeal Bill without telling the Opposition what the Bill was or what it contained.

Instead of a short debate, the Government introduced the Bill, shut down debate and went to a vote inside 90 minutes. That included a series of divisions as Labor MPs sought to speak but were stopped by the Government.

The new mining tax Bill is only slightly different from the original piece of legislation that was heavily amended by the Senate in July.

The total savings to the Budget over the forward estimates are now estimated at $17 billion.

Of the various measures the Government has tied to abolition of the tax, the single biggest saving will come from axing the schoolkids bonus at $4.7 billion.

No dates for the abolition of the measures have been set in the new legislation, with the Government saying that would be up to Treasurer Joe Hockey's discretion. The original move to axe the mining tax failed after PUP, and other independents, demanded the Bill be broken up.

Mr Palmer said PUP senators were still demanding the schoolkids bonus, the low-income superannuation guarantee and the low-income bonus be retained.

"Ill-conceived mining tax repeal Bill won't pass Senate without low-income super contribution, income support bonus & the schoolkids bonus," he tweeted.

Shadow treasurer Chris Bowen said under the Government's new repeal Bill, the increase in the superannuation guarantee would not be in place until the 2030s.

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