We would scrap mining tax: Abbott’s budget reply

Opposition Leader Tony Abbott says the Coalition would scrap the carbon tax and the mining tax if it wins the September election.

Abbott last night delivered his reply to Labor’s budget for 2013/14, restating the coalition’s pledge to roll back the government’s carbon tax and abolish the mining tax.

“We will abolish the mining tax – because that’s the quickest way to support investment and jobs,” he said.

“By cutting tax and regulation, we will boost productivity.

He also took the opportunity to slam the government for getting the mining tax forecasts so wrong.

"It got the mining tax numbers wrong. It got the carbon tax numbers wrong," Abbott said.

Abbott said many of the measures in Labor's budget were objectionable, saying poor management over the past five years has caused a “budget emergency”.

As a result, the coalition reserved the right to implement some of the government's $43 billion of planned savings over the forward estimates to deal with the declared “budget emergency”.

He did not mention whether the coalition would reverse the recent changes made to exploration deductions and thin capitalisation rules announced this week in Labor’s budget.

The changes, effective immediately, will deliver estimated savings of $1.1bn in deductions over the next 3 years.

Abbott said tax reform is needed and pledged to produce a comprehensive white paper on the issue in the first two years of a coalition government, SBS reported.

"We want taxes that are lower, simpler and fairer and will take proposals for further tax reform to the following election,” he said.

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