Greens Deal reinforces Mining Super Tax Risk

Wednesday, 21 July 2010 07:10

Have no doubt, a preference deal between Labor and the Greens as well as the risk of Green balance of power in the Senate increases the risk of the mining super tax. See our blog post and have your say.

Bob Brown is on the public record on three things that point to this risk. He opposes any cuts to to the Government's out of control expenditure. He opposed reductions in the mining tax impost and he wants any revenue diverted away from mining sector related infrastructure.

He made it abundantly clear that the Greens were prepared to amend the tax deal when it goes before the Senate (source The Australian 1 July).

All this adds up to increased budget pressure, the need for higher taxes and for the mining sector more for infrastructure on top of the tax. The Greens will extract concessions from the Government in order to pass legislation.

The mining tax debacle has been bad from the outset. The Government didn't consult, they got the numbers wrong and they nearly killed the sector in a stuff up. Analysts say the cost of finance has gone up due to the tax, the biggest impact is beyind the current budget cycle and many smaller projects now simply won't get up. Investors have been frightended off and the risk hasn't gone away.

The day after the election and when the Tax legislation comes up for Senate review is when the ALP-Green preference deal will be paid back.

Clever really.  Gillard will get her peace with the mining sector until after the election is out of the way and then blame Greens "amendments" for the extra revenue she'll happily collect when the deals are done.

Oppose the mining super tax. Sign our petition and keep the issue alive during the election.

Unless thousands of Australians make their view on this known this tax will be applied - with Greens playing a role in its design.