Clive Palmer and Glenn Lazarus... deal with government
Clive Palmer and Glenn Lazarus... deal with government Nev Madsen

Mining tax to be scrapped, school bonus means tested

AUSTRALIA'S mining tax is set to be scrapped after Clive Palmer's party struck a deal with the government which will see the School Kids Bonus retained until after the next election.

PUP senator Glenn Lazarus said his party and Motoring Enthusiast senator Ricky Muir would back the deal.

Senator Lazarus tweeted a short time ago to say that PUP had saved the schoolkids bonus.

PUP had insisted it would not back the mining tax repeal unless the schoolkids bonus and other assistance measures were retained.

But the bonus will now only be available to families earning up to $100,000 a year, until the end of 2016.

The ABC reports  the agreement will also further delay superannuation increases for Australian workers, putting them on hold until 2021.

Finance Minister Mathias Cormann announced the breakthrough in the Senate on Tuesday.

"I am pleased to announce that the Government has received indications from a majority of senators in this chamber that they will support our mining tax repeal package subject to amendments which are currently being circulated in the chamber," he said.

The amendments are expected to include etaining the income support bonus until December 31, 2016, retaining the schoolkids bonus until December 31 2016, and means-testing it to give it to families on an annual household income of $100,000.