Low-paid workers worried about their retirement nest egg may have a friend in Clive Palmer.
The mining magnate-turned MP has ruled out supporting the abolition of the tax-free threshold on superannuation savings that affect people earning less than $37,000.
The initiative is one of several measures tied to the mining tax abolition legislation that the Abbott government hopes will be supported by the new Senate.
New senators, including three from the Palmer United Party (PUP) who hold the balance of power with the Australian Greens and independents, sat for the first time on Monday.
Mr Palmer told the National Press Club in Canberra that while the PUP supports the abolition of the mining tax, it can't back some of the measures within the legislation and is negotiating to have them removed in the Senate.
This would also include the SchoolKids Bonus.
Asked how the government would fund the measures he wanted to retain - amounting to over $7.5 billion over four years - Mr Palmer said the government has plenty of money.
"(Treasurer) Joe Hockey is pulling your leg," he said.
Labor said the PUP's decision on the Low Income Superannuation Contribution would stop the government ripping away a $500 tax break for 3.6 million low-paid workers.
However, Mr Palmer would not stand in the way of other measures going, like the instant asset write down for business, because they are not crucial to the lives of Australians.
The opposition's families spokeswoman, Jenny Macklin, said PUP's support for the SchoolKids Bonus was good news for families, particularly as it never came under the mining tax legislation when it was introduced by Labor.
The abolition of the minerals resource rent tax (MRRT) and associated measures was a key election promise of the Abbott government.
The only MRRT initiative the government will keep is funding the tax concessions for the incremental increases in the compulsory super guarantee to 12 per cent, albeit with a suspension in Labor's timetable for planned increases.
However, because of delays in ditching the MRRT laws beyond July 1, the super guarantee has now increased to 9.5 per cent from 9.25 per cent, rather than that change being suspended for two years under the government's plan.
Concerned about any confusion, the Australian Taxation Office issued a statement on Monday reminding business owners of their obligations to increase super contributions for their staff.
The rate will now remain at 9.5 per cent until June 30, 2018 and then increase by 0.5 percentage points each year until it reaches 12 per cent.
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