ID :
171903
Wed, 03/30/2011 - 13:35
Auther :
Shortlink :
http://m.oananews.org//node/171903
The shortlink copeid
PM still trying to woo Barnett on MRRT
(AAP) - Prime Minister Julia Gillard is continuing the hard sell of the government's resources tax with an unconvinced West Australian Premier Colin Barnett.
Last week Treasurer Wayne Swan said the federal government could use GST payments to penalise mining states if they raised royalties in future.
Any future royalty hikes would mean the commonwealth would have to compensate mining companies further under the tax arrangements.
Under the government's deal with the miners full credits for state-based royalties will be paid to the mining companies and any future hikes would come out of the commonwealth coffers.
Mr Barnett has questioned whether the commonwealth has the power to withhold GST payments to those states that raise mining royalties.
"I don't think the federal treasurer can do that," Mr Barnett told ABC Radio on Wednesday, adding GST arrangements were law.
"Remember the states gave up their constitutional right to income tax and company tax in exchange for that."
The federal government could take a "malicious and vengeful" approach by reducing commonwealth funding to states if it wanted, the premier said.
"(Mr Swan) can certainly cut infrastructure funds, he can cut services to people or education or health, but what sort of Australia would that be," he said.
Ms Gillard, who is visiting WA, said the federal government would be in a position to give the state more once the MRRT, planned to start next year, was in place.
"More infrastructure, more support for small businesses, there are more than 200,000 small businesses in this state," she told reporters in Perth.
"And we will be able to better support the superannuation of more than 800,000 Western Australians so they have a better retirement income.
"That's what the minerals resource rent tax is about, I'll keep pursuing that discussion with Premier Barnett."
But Mr Barnett, who has long moaned about the rate of the state's GST return, disagrees.
He says a return of $2 billion over 10 years from the MRRT to WA for capital projects was inadequate.
"I would much rather not have a mining tax and not have that $2 billion," he said.
"That would be a relatively small contribution to the infrastructure needs of this state."
Ms Gillard also has to win over the Australian Greens, whose support for the proposed tax is crucial for its passage through the parliament, when they seize the balance of power in the Senate in July.
The minor party supports the tax but doesn't want the revenue to pay for a corporate tax rate cut of one per cent, from 30 to 29 per cent.
Greens Senator Sarah Hanson-Young wants some of the revenue from the MRRT spent on bridging the funding gap between private and public schools.
To achieve that outcome the federal government would have to put "a bit more money in".
"Where do we get the money from? Let's have a look at reconfiguring the mining tax."
Last week Treasurer Wayne Swan said the federal government could use GST payments to penalise mining states if they raised royalties in future.
Any future royalty hikes would mean the commonwealth would have to compensate mining companies further under the tax arrangements.
Under the government's deal with the miners full credits for state-based royalties will be paid to the mining companies and any future hikes would come out of the commonwealth coffers.
Mr Barnett has questioned whether the commonwealth has the power to withhold GST payments to those states that raise mining royalties.
"I don't think the federal treasurer can do that," Mr Barnett told ABC Radio on Wednesday, adding GST arrangements were law.
"Remember the states gave up their constitutional right to income tax and company tax in exchange for that."
The federal government could take a "malicious and vengeful" approach by reducing commonwealth funding to states if it wanted, the premier said.
"(Mr Swan) can certainly cut infrastructure funds, he can cut services to people or education or health, but what sort of Australia would that be," he said.
Ms Gillard, who is visiting WA, said the federal government would be in a position to give the state more once the MRRT, planned to start next year, was in place.
"More infrastructure, more support for small businesses, there are more than 200,000 small businesses in this state," she told reporters in Perth.
"And we will be able to better support the superannuation of more than 800,000 Western Australians so they have a better retirement income.
"That's what the minerals resource rent tax is about, I'll keep pursuing that discussion with Premier Barnett."
But Mr Barnett, who has long moaned about the rate of the state's GST return, disagrees.
He says a return of $2 billion over 10 years from the MRRT to WA for capital projects was inadequate.
"I would much rather not have a mining tax and not have that $2 billion," he said.
"That would be a relatively small contribution to the infrastructure needs of this state."
Ms Gillard also has to win over the Australian Greens, whose support for the proposed tax is crucial for its passage through the parliament, when they seize the balance of power in the Senate in July.
The minor party supports the tax but doesn't want the revenue to pay for a corporate tax rate cut of one per cent, from 30 to 29 per cent.
Greens Senator Sarah Hanson-Young wants some of the revenue from the MRRT spent on bridging the funding gap between private and public schools.
To achieve that outcome the federal government would have to put "a bit more money in".
"Where do we get the money from? Let's have a look at reconfiguring the mining tax."
