The Abbott Government crossed another election promise off its list today when the Senate voted to repeal the Gillard Government’s mining tax, 36-33, after Finance Minister Mathias Cormann cut a deal with the crossbench, including Ricky Muir from the Motoring Enthusiasts Party and the three Palmer United Party senators.
Cormann made the surprise announcement in the Senate this afternoon saying it would add $10 billion to the budget’s bottom line over four years, which suggests the deal will cost $6.5 billion of the $16.5bn the Coalition hoped to save.
PUP senator Glenn Lazarus said that while his bloc had agreed to repeal the tax, some of the spending which the Abbott government had promised to scrap in the lead up to last year’s election will be retained in the short term.
The schoolkids bonus will stay until 2016, but will be means-tested. The income support bonus will also remain in place.
As part of the deal, the rise in compulsory superannuation to 10% will be delayed a further 3 years and now won’t be introduced until 2021.
Low income super contributions will remain until 2017.
Clive Palmer said 50% of Australians will be dead before they can access their super, so he preferred to give families the money now.
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