MPs party in lower house as mining tax repeal bill passes

The Abbott government is preparing the mining tax for the scrap heap with its repeal bill passing the lower house again.

The government rammed its bill through to the upper house on Thursday, limiting debate to under two hours, ready for a fresh Senate where it's likely to pass with crossbench support in a fortnight.

The same bill was rejected by the upper house in March.

The Coalition says the mining tax has failed to do its job, only raising $340 million since being introduced.

The repeal will return $12.6 billion to the budget by June 2017.

The Parliamentary Secretary to the Minister for Finance, Michael McCormack, said the tax undermined confidence in Australia as an investment destination and its reputation as resource supplier.

Labor took aim at the government's argument, questioning how it could claim the mining tax raised too much and yet too little revenue at the same time.

It couldn't have it both ways.

"If it doesn't raise enough money, then how does it damage the mining industry?" shadow treasurer Chris Bowen asked.

The Opposition labelled the repeal as an attack on working Australians - because it would axe several measures it was supposed fund.

These include the schoolkids bonus and freezing of the superannuation guarantee rate.

Labor MP Alannah MacTiernan used the debate to clarify her position on the tax, claiming to have been "grossly verballed" by the Coalition.

Despite her earlier comments, the tax did not have a negative impact on her home state of Western Australia, she insisted.

But Ms MacTiernan was still disappointed that Labor had failed to "get it right".

The mining tax is expected to pass the upper house with the support of the Palmer United Party and other crossbenchers.

The Minerals Resource Rent Tax Repeal And Other Measures Bill 2013 (No. 2) now goes to the senate.

AAP

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