Boost to family tax benefits axed

Aussie families will no longer receive the promised boost to family tax benefits. Picture: Thinkstock

THE Government is abandoning its promised boost to family tax benefits because the mining tax meant to fund it has been a dud.

Finance Minister Penny Wong today confirmed the planned $600-a-year top-up pledged in the last Budget would be scrapped in the Budget next week.

"We are not in a position to proceed with the boost to family tax benefits as a result of the revenue challenge that the Government is facing and the nation is facing," Senator Wong told Sky News.

"So this is a difficult decision but a responsible decision given what is happening to revenue."

The backdown will not affect Family Tax Benefit A payments currently received by households. But it means the Government will not have to find about $1.8 billion extra in the Budget.

The abandonment of the promise is a severe embarrassment for the Government. It will be seen as both a breach of faith with voters, and a sign of incompetent economic management.

The Mineral Resources Rental Tax was to have raised about $1 billion this financial year from the profits of big coal and iron ore miners.

However, the decline in ore prices and some legitimate accountancy practices by the miners has meant this target will not be met.

And Government tax revenue generally has been falling so it can't find the funding elsewhere.

"The impact in the current financial year, between last year’s budget and this year’s budget looks to be in the order of $17 billion," the Senator said today.

"So that is a very significant revenue shortfall."

View the original article here

NSW mining benefits overstated: report

Source: The Australian

RESOURCE companies are exaggerating the projected economic and employment benefits of coal mining and gas projects in NSW, a report has found.

Mining companies are also downplaying the health and environmental risks of these projects, a report by Economists at Large and the Australia Institute said.

The report analysed seven development proposals across the state, and found models used to assess impacts on employment include unrealistic assumptions such as there being no limits on the supply of skilled labour.

Damage to native vegetation and the rise of greenhouse gas emissions are also underestimated in most of the proposals.

The report, released by the Nature Conservation Council of NSW (NCC), said the projects need to be thoroughly assessed because they fail to highlight several issues such as health costs, and also contain inconsistent figures or analysis.

"Given the serious risks to human health, water and the natural environment, the use of false or misleading economic data to support development applications is simply immoral," NCC campaigns director Kate Smolski said.

"This report clearly shows why the government must overhaul the planning system to ensure that economic claims made by developers are thoroughly assessed by an independent body."

AAP svm/apm/

View the original article here