Mining tax remains in place

A dispute between the two houses of parliament means the minerals resource rent tax remains in place.

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Resources companies will have to pay their next instalment of the mining tax after a government bid to repeal the impost was foiled by the Senate.

While the Senate voted to abolish the tax, it wanted programs funded by its revenue to remain in place.

That wasn't acceptable to the government which used its numbers in the lower house to reject Senate amendments.

"It would be nice to live in a magic pudding world ... but when you're in government you've got to try and make things balance up," government Senate leader Eric Abetz told parliament on Friday.

The government says retaining the schoolkids bonus, low-income superannuation contribution and the income support bonus will cost the budget $9.6 billion over four years.

Palmer United Party senators joined Labor, the Greens and other crossbenchers in opposing the government.

"If you choose to let the big miners off the hook ... (don't expect us to) take the money off the poor," Greens leader Christine Milne said.

Family First senator Bob Day, who supports repeal of the mining tax, doesn't believe the low-income supports should be abolished just because the tax would no longer be in place.

"That ain't no way to run a railroad. We can have both," he said.

The next instalment of the tax is due on Monday.

The government can re-introduce its legislation at a later time but is unlikely to do so without first getting more support from the cross bench or Labor.


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