The Gillard government’s controversial mining tax, which aims to spread the spoils of the mining boom across Australia’s economy, has cleared its final hurdle and passed the Senate last week.
Legislation that imposes a 30 per cent tax on the extraordinary profits of coal and iron ore miners passed the Senate on Monday night 38 votes to 32, with support of the Greens. It plans to use the $11 billion it will generate over three years to boost compulsory superannuation contributions, pay for infrastructure and provide a one per cent tax cut for business.
Labor’s initial proposal in 2010, to tax mining companies’ super profits at 40 per cent, attracted industry-wide opposition which contributed to the downfall of former prime minister Kevin Rudd.
Prime Minister Julia Gillard later negotiated a modified tax rate with BHP, Rio and Xstrata, but smaller miners remain unhappy with the deal with Queensland mining magnate Clive Palmer threatening a High Court challenge. Opposition Leader Tony Abbott is vowing to repeal the tax if he wins government.
The Australian Greens made a last ditch bid to have the tax rate increased to 40 per cent but that amendment was defeated. Another Greens amendment to apply the tax to gold, uranium and rare earth minerals was ruled out of order by Senate President John Hogg and thrown out.
The mining tax will operate from July 1, 2012.
(Source: http://www.smh.com.au/environment)
