Western Australia's resources sector is celebrating after the Senate passed the mining tax repeal bill as the Abbott Government reached a deal with the Palmer United Party on Tuesday.
The bill passed the Senate 36-33 and will now return to the Lower House where the Federal Government has a majority.
WA's Chamber of Minerals and Energy welcomed the decision, describing the tax as inefficient, ineffective and a "regulatory burden".
"The removal of unnecessary taxes such as the minerals resources rent tax and carbon tax will assist the resources sector becoming more internationally competitive," CME chief executive Reg Howard-Smith said.
"The [tax] has been both inefficient and ineffective while adding a significant compliance and regulatory burden to industry.
"The resource sector's prime focus is on the high cost of doing business here in Australia.
"When combined with decreasing ore grades and new minerals and energy rich regions emerging around the world, maintaining Western Australia's resources project competiveness is crucial."
Not everyone was happy though. Federal Labor and the Greens lashed out at what Senate leader Penny Wong called "a stealth attack".
The deal means millions of workers will not receive a promised boost to their superannuation, with PUP agreeing to let the government delay the increase to improve the bottom line.
Compulsory super, currently set at 9.5 per cent of an employee's wages, had been set to increase to 12 per cent by July 2019.
PUP has made a deal with the government that will sacrifice that increase in order to keep spending associated with the mining tax.
The amendment circulated says the superannuation guarantee will not increase to 12 per cent until on or after July 1, 2025.
An amendment moved by Labor, with support from the Greens, called for the government's proposal to go to an inquiry. Labor's proposal was defeated 34 votes to 31.
PUP senator Glenn Lazarus told the Senate the deal would keep the schoolkids bonus in place to December 2016, low income super contributions until June 2017 and the low income bonus until December 2016.
Finance Minister Mathias Cormann told the Senate that the schoolkids bonus would be means tested and only families earning $100,000 a year or less would be eligible.
Treasurer Joe Hockey and PUP leader Clive Palmer appeared in the chamber to shake hands as the amended bill was presented.
Labor and the Greens attacked the government for what Senator Wong called "a dirty deal".
"We have another deal… another dirty deal where they try to ram through the chamber just like we've seen before," she said.
Greens leader Christine Milne called the move to gag debate on the amended bill "contempt for the Senate".
"I can't remember a time when we had amendments dropped on the desk with no attempt to explain what they mean," she said.
Senator Cormann rejected accusations the government was rushing the legislation through.
"This is three hours more than the previous government spent on the whole debate in the first place," he said.
Senator Cormann said the deal would benefit the economy.
"A strong mining industry...is good for Australia, good for the economy and it's an important part of generating more jobs," he said.
Senator Milne called the deal "an absolute disgrace" that would hurt the super entitlements of millions of working Australians.
"This is exactly what the Australian people were concerned about at the prospect of a mining billionaire coming in here."
