yet another self-inflicted wound .....
from PoliticOz ….
a black hole in the budget ….
The changes that Gillard and Swan made to Rudd's original mining tax to make it more palatable to the big miners – and quiet their public criticism – are the reason it is being roundly condemned today. The amount collected by the federal government's new tax was near zero as a result of concessions made by Gillard and Swan.
In a slightly perverse outcome, it is state governments that have made off like bandits as a result of the new mining tax. When the MRRT was introduced, state governments realised they could essentially pinch the new revenues as a result of the loophole that allowed miners to deduct all state royalties from their MRRT liabilities. States promptly raised state royalties. So several billion in extra revenue has been collected from mining companies since the introduction of tax - it's just been going to state governments. Hence the frustration of federal MPs of all persuasions.
The upcoming GST division negotiations will be interesting.