Oz Election Thread #4 - Gillard's Labor

Australia: are we too stupid to live in it?
by Firstdog

Clarke and Dawe host Clive Palmer, businessman, mining magnate and part-time critic, and chat about how the elected government could end up running the whole country.

Last-minute Greens deal paves way for mining tax
Tim Lester
March 13, 2012 - 6:50PM/the AGE


Deal confirmed ... Greens leader Bob Brown. Photo: Andrew Meares

The government’s mining tax is now expected to pass parliament before the end of next week.

In a late afternoon press conference, Greens leader Senator Bob Brown confirmed a deal with the government had been secured in talks today.

The Greens have agreed to give the contentious mining tax the backing it needs to pass the senate during the current two week parliamentary sitting and in return, the government will make public its planned company tax cuts legislation tomorrow.

In recent days, the Greens had indicated they might deprive the government of the Senate votes it needed to pass the mining tax if details of the tax cuts remained hidden.

The tax cuts were to have remained under wraps until the Federal budget is announced on May 8th.

The Greens say they will support tax cuts for small business but will side with the Coalition in opposing cuts to big business.

Coalition treasury spokesman Joe Hockey confirmed today that the opposition would oppose all company tax cuts associated with the mining tax package.

The Coalition will now be under pressure to reconsider its position given that it might now find itself voting with the Greens against a tax cut for big business.

During the House of Representatives debate on the mining tax, the Greens held out until the last minute, eventually giving the Gillard Government their positive vote after a backroom deal.

The Government agreed to delay a planned tax break for foreign banks, and the Greens supported the mining tax legislation.

Gillard, Abbott in stand-off over tax cuts
By chief political correspondent Emma Griffiths
Updated March 14, 2012 15:43:53/ABC news

The Prime Minister and Opposition Leader took their row over company tax cuts to the business frontline this morning, visiting small business operators to spruik their support for the sector.

Julia Gillard and Tony Abbott are at loggerheads over a 1 per cent reduction in company taxes paid for by the Government's contentious minerals resource rent tax (MRRT).

The MRRT is within days of becoming law, but the row over the company tax cuts has placed the entire measure in jeopardy.

The Greens and the Coalition are both refusing to allow the tax cut to go through the Senate.

Mr Abbott, who toured a solar energy business in Canberra, says he does not support the cut because it is dependent on higher taxes for the mining sector.

"What we've said very consistently ever since the Government first announced the mining tax is that we don't support the new tax, and we don't support the measures associated with the new tax," he said.

"A tax cut that's paid for with a tax increase is not a cut, it's a con. It's a tax fiddle, not a tax reduction."

Mr Abbott has instead restated the Coalition's promise of a "modest" company tax cut, but he would not say when it would be introduced or how much it would be.

"It is the Coalition's firm commitment, our strong policy, to deliver a modest company tax cut at the next election and all our policies will be fully funded," he said.

"What you'll get under us are tax cuts without new taxes.

"What you're getting under Labor are tax cuts that are funded by new taxes, and a tax cut that's paid for with a tax increase."
Tax break

The Greens want the 1 per cent company tax cut restricted to small business.

Greens leader Bob Brown says it "doesn't make sense" to give big business a tax break.

"The Government may have made a commitment to this, but times have changed and it's time the Government changed this commitment and dropped this proposal," he said.

The Greens hold the balance of power in the Senate and, with Coalition votes, could well succeed in blocking the Government's plan.

They have agreed to pass the initial mining tax legislation though, which the Government believes will pass the Senate on Monday.

Senator Brown has suggested that the definition of a small business be extended, from a $2 million per annum turnover to $5 million, to ensure more companies benefit.

"The Greens will be able to, on current indications, prevent the tax cut from going to the wealthy corporate sector but ensure that it still goes to small business in this country," he said.

Ms Gillard has refused to say whether she is willing to compromise with the Greens.

"The Government's position today is crystal clear," she told reporters at a Canberra book shop.

"We're for taking a fair share of tax from the turbo-charged section of the economy - the resources sector - and using that to benefit businesses around the nation big and small."
Surprised

But Ms Gillard was unequivocal in her criticism of the Opposition's stance.

"I am very worried about the uncertainty that Tony Abbott's created today," she said.

"This is proof that Mr Abbott has become so negative that he is planning to vote against tax cuts for small business, vote against jobs, and vote against the Australian economy."

She says she has been "truly surprised" by Mr Abbott's opposition to a business tax cut. ....<cont>

Huge wealth doesn't come with any increase in rights

Andrew Forrest's commitment to indigenous Australians is to be admired, but to enter a public debate on corporate tax when your company is not paying any is the sort of audacious play made by gentlemen of fortune in 18th century comedies. That Forrest and his wife gave $50 million in charity last year is not the point. Charity is optional; tax is not.

Mining tax laws pass Senate
Updated March 19, 2012 23:04:07/ABC NEWS


The Marandoo Mine in the Pilbara Photo: The Federal Government's mining tax laws have passed the Senate. (AAP)

The Federal Government's mining tax legislation has passed the Senate and will soon become law.

The tax gives the Federal Government an estimated $10 billion war chest to win over small- and medium-sized businesses before the next election.

The new tax will take effect from the middle of the year.

Federal Treasurer Wayne Swan said on his Twitter account the legislation was a "huge economic reform of our time".

"[It] will help us deliver more super savings for 8.4m ppl, tax breaks for 2.7m small businesses and a company tax cut," he tweeted.

"We all own Australia's resources, so it's only fair we all share the benefits."

The legislation passed the Upper House despite repeated attempts by the Coalition to delay the final vote.

The Opposition has maintained the tax will drive away investment and damage the mining industry, and has also accused the Government and Greens of rushing the tax through the Senate.

The Greens tried unsuccessfully to expand the scope of the tax to include gold and uranium miners, but that was declared unconstitutional by the Senate President.

The Senate has passed a motion calling on the Government to release legal advice it received over concerns the tax may be the subject of a constitutional challenge.

The Government has agreed to publish monthly updates on how much revenue the mining tax will bring in.

The Greens on Sunday said the mining tax was too narrow and should be expanded so the Government can boost funding for health and education.

Greens leader Bob Brown said the extra information will make it easier for his party to push for the tax to be reviewed and increased in the future.