Parliament Vote on $11-Billion Mining Tax Package Likely on Wednesday
Parliament is set to vote on the $11-billion mining tax measure this week. House leader Anthony Albanese said the vote could be as early as Wednesday as soon as the federal government secured the support of the crossbenchers.
The two are still in last-minute negotiations over the crossbenchers support for the measure for the mining tax to be passed in the lower house. Labor needs the support of at least four crossbenchers. At least one independent MP, Tony Windsor, indicated on Friday he would likely back the measure.
Prime Minister Julia Gillard, who is returning from the East Asia Summit in Bali, is expected to woo the crossbenchers' support.
Treasurer Wayne Swan, who is also seeking MP support for the tax measure said the mining tax will spread the dividends of the mining boom to help provide jobs, fund infrastructure, boost national savings and sustain growth across the Australian economy.
The mining tax will require large iron ore and coal mine operators to pay a 30 per cent tax on their super profits.
Under the reforms in the mining tax bill, about 400,000 small home-based businesses would lose their 25 per cent tax break put in place by the Howard government. However, Labor said the measure would even give small business owners a better deal with a $5,000 write-off if they buy a vehicle and another $6,500 tax break for purchase of other equipment as well as a company tax rate reduction.
Other features of the mining tax are tax breaks for superannuation and higher compulsory employer contribution to 12 per cent from 9 per cent.