Mining tax to dominate Question Time

The government's proposed new mining tax and budget fallout are tipped to dominate in Canberra when parliament resumes today.

It will be the first question time with Opposition Leader Tony Abbott since he cast doubt on his truthfulness, while shadow treasurer Joe Hockey will come under some pressure following his lamentable budget reply speech at the National Press Club in Canberra.

Both sides will look to prosecute their case in terms of the resource super profits tax.

Treasurer Wayne Swan on Sunday warned the government would not be backing down, while also pointing to independent analysis in the Henry tax review showing ordinary workers were getting ripped off by the likes of BHP Billiton and Rio Tinto.

"In Australia, wholly-domestic mining companies paid an effective tax rate of only 17 per cent and multinational mining companies paid an effective tax rate of only 13 per cent," Mr Swan said.

"Both (are) dramatically below the headline company tax rate of 30 per cent."

By contrast, the treasurer said, domestic manufacturers paid 25 cents of company tax for each dollar earned, while local retailers paid 27 cents in the dollar, during the period 2003 to 2007.

"Nobody should doubt the government's resolve to make sure the community gets a fair share of the mineral resources that belong to the Australian people, not the mining companies," he said.

Similar comments from Deputy Prime Minister Julia Gillard suggested the government's line of attack this week would be built around differences in the tax paid by various sectors of the

economy.

The coalition, which opposes the RSPT, will continue to argue the 40 per cent levy on mining profits will hurt the economy, costing jobs and sending investment offshore.

That position will be echoed by a television and radio advertising blitz commissioned by the Minerals Council of Australia.

However the coalition's confused response to the budget, which saw Mr Hockey leave the details on its questionable savings strategy to opposition finance spokesman Andrew Robb, is likely to blunt any attack on the government.

Mr Hockey was heavily criticised after his National Press Club address, capping off a disastrous week for the coalition after Mr Abbott's admission that only his scripted remarks could be taken as "gospel truth".

The opposition will be aided by two weeks of Senate estimates hearings, which will see it try to punch holes in the budget and the RSPT. It will also target the RSPT during question time in the House of Representatives.

But in what will be the first sittings since Mr Abbott's startling admission, the mismanagement of a key economic speech by Mr Hockey, and Michael Johnson's expulsion from the Liberal National Party, the government will have plenty of ammunition of its own.