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Democracy shines again with the Mining Tax scrapped

September 2, 2014

02 September 2014

The Mining Tax is gone while the School Kids Bonus cuts out for families earning over $100,000 per year, and cuts out entirely after the next election. That was the result of today’s senate deal between the government and the Palmer United Party. The deal means $10bn will be saved from the budget over 4 years. It would be $16.5bn had the bonus been fully scrapped, as was the election promise.

A great day and a great compromise. Just like with the carbon tax repealed, Australia’s democracy succeeds again. While there should be a Mining Tax, there certainly should not be free money doled out to people simply for having a kid at school. This stupid “School Kids Bonus” was made even more sillier because it was linked to revenue from the Mining Tax – a tax so flawed that it raised almost nothing. The freebie was unfunded and a blight on Australia’s spiralling debt. So its drastic diminution is the key benefit of the Mining Tax repeal.

Let’s remember, this School Kids Bonus freebie was only ever a vote-buying scam by the previous and treacherous Labor government, most particularly to be used as a wedge issue to argue “The Liberal Party will repeal the School Kids Bonus”. The then opposition quickly called the government’s bluff, announcing it would repeal the bonus, particularly since it would keep the compensation for the carbon tax once the that deceitful tax goes. Now with the bonus to expire totally after the next election, voters get the chance to extend it if Labor makes an election issue out of it.

The sad fact is that the politicisation process obscured the fact that Australia does need a Mining Tax. In a boom/bust industry like mining, it’s important to gain the extra revenue when you can. Then such revenues MUST go towards the spiralling debt. That’s the entire point of the Mining Tax – collect it the good times so it’s there for the bad times. Therefore you save it, not waste it. Especially you don’t waste it on oxymoronic middle class welfare.

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From → Politics

2 Comments
  1. Well this is bullshit. It makes no sense to say ‘the mining tax isn’t raising enough revenue- lets abolish it’ – the miners were able to take upfront depreciation, and were facing bill bill very soon.
    And of course the only reason the mining tax was reduced was because of the conservative / newscrap campaign against it when first mooted.
    Its really weird that conservative fuckwits in Australia campaigned to nobble the mining tax, then say ‘its nobbled – so it should be abolished’
    The government has just effectively stolen 6bn in revenue from the Australian people and gifted it to billionaires. Well done conservatives!

    • It wasn’t raising any money AND anything that it did raise was wasted on ridiculous middle class welfare. Next time it’s implemented it will be done right. Even better, cut some of the subsidies to the mining companies and then maybe no mining tax needed at all.

      Naturally, blame the media. How pathetic. That’s all political hacks do. I guess it’s all the media’s fault the $7 GP co-pay is unpopular.

      Again, the mining tax raised nothing. No one’s missing out on anything. Especially not since the boom is over. Billions of dollars are already being stolen from the public thanks to interest on the rising debt. Because the real benefit of scrapping the mining tax is the scrapping of the SKB that was linked to it and hopelessly insufficiently covered by it, the country’s debt situation is slightly improved.

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