The Treasurer this morning revealed net revenue from the Mineral Resource Rent Tax was only $600,000 in the June quarter, compared with the already-downgraded $150 million forecast last year.
Is that net of the promise to refund state government royalties? Either way another terrible Rudd-Gillard policy bites the dust.
Hockey, however, also said this:
The PUP was elected on the basis they were going to repeal the mining tax package. We were elected on the basis we were going to repeal the mining tax package. We ask the parliament to respect the mandate we have.
Hmmmmmm – turns out that the Parliament did respect the “mandate”. Both the House and the Senate passed legislation repealing the mining tax. The government, however, got greedy – it wanted to repeal the tax and the associated “expenditure” in one fell swoop. The Senate passed the tax repeal but not the associated expenditure – the only reason the mining tax is still on the books is because the Abbott government did not accept the Senate amendments.
Okay – so what is the associated “expenditure” that is causing so much trouble?
- Loss carry back
- Small business asset write-off and motor vehicle deduction
- Foregone tax revenue from the increased superannuation
- school kid bonus
- low income superannuation contribution
The financial consequences are set out here:
In that table we see about $7.28 billion of “expenditure” – when you separate out actual expenditure from tax cuts we see that the Abbott government was looking to repeal about $4 billion of tax cuts.
The Abbott government has no mandate to increase taxes – in fact, quite the contrary.