Mining tax passes Senate

The mining tax will become a reality on 1 July 2012. The Government’s much-maligned vehicle for claiming back profits made by the mining magnates as part of Australia’s resources boom, passed the Senate last night by 38 votes to 32.

The legislation has been slammed by the Greens, although they ultimately voted to have it passed, for being too weak and not taking enough of a share of the profits from the resources sector. Meanwhile, Tony Abbott is rallying the Liberal Party against the tax, promising to repeal it should get the Liberals into power at the next General Election. However, the Government had to promise concessions to mining companies to ensure the approval of the legislation.

The mining tax will raise funds to provide cuts in tax, the rise in the superannuation guarantee from nine to 12 per cent and infrastructure investment.

To find out more about the passing of the mining tax, read, or watch the following Herald Sun video.

Do you think the mining tax will face any further challenges before 1 July 2012?

Read Debbie’s blog on the issue here.