Milne issued a warning to Prime Minister Julia Gillard, saying that the budget surplus was not untouchable. She also said that the Greens would not support any budget cuts or changes that could hurt families nor would it agree to abolish the carbon tax.

Milne said that carbon price is vital to address climate change and that her agreement with Julia Gillard over guaranteed supply does not mean agreement with the budget cuts. Julia Gillard recently announced a carbon tax bonus for families to help sell the unpopular plan to constituents.

According to Milne, negotiations should be held to any legislated that is unrelated with supply. She added that everyone’s hard at work to raise revenue and subsequently, avoid cuts to services.

Milne emphasized that the Greens seek strong reforms in the May budget to help improve dental health in the country, especially the low-income families. She acknowledged that because she’s a mother of two children, she feels the need of other families, as well.

The Tasmanian MP envisions a “decarbonised” economy in the next 38 years. She said the country should be enjoying electric cars, electricity-powered trains and solar planes on every roof by 2050.

Milne became leader of the Greens after Senator Bob Brown announced his resignation a few days ago. Milne first gained prominence when she opposed the building of the Wesley Vale pulp mill, saying that it posed negative impact on the environment.

The carbon tax bonus payments will start rolling in May and families are set to receive up to $100 per child.  Pensioners, meanwhile, will get $250. Taxpayers should expect to see this money in their bank accounts in lump sum payments.

Additionally, a million workers are not required to lodge any tax return once the tax-free threshold is implemented on the first of July.  Part-time workers like students or mothers, as well as retirees, will also benefit from this tax-free threshold.

The carbon tax bonuses comes way ahead of the implementation of the carbon tax law, as well as the $300/year annual tax cut for Australians with less than $80,000/year salary.

The taxpayers, however, will shoulder a public education campaign and the government is planning on a multi-million dollar advertising contract for this.

The government apparently recognizes the impact of carbon tax among families and the tax relief should help manage tight household budgets.

Once implemented, carbon tax is expected to increase bills to about $10 more per week.

The Carbon Tax Compensation Package, in a nutshell:
• Based on the Family Tax Benefit A, families will receive their carbon tax cash bonuses from May 16 to 29.
• Based on the Family Tax Benefit B, families will receive extra $69 and up to $300 for additional supplements.
• Pensioners should expect their bonus, the Clean Energy Advance, around May 28 to June 8
• Retirees with Commonwealth Seniors Health Card will also get their bonus of $250 per individual, or $190 for each for couples next month.
• Students who under the Austudy payments will get their bonuses from June 11 to 22.

I never thought I would see the day that the Liberal Party would join with the Greens to vote against a tax cut for business

Tony Abbot hit back claiming he too will lower the company tax rate, but without using a mining tax to fund it. He was unspecific on the amount of the reduction, which appear to be a back down on his 1.5% company tax rate reduction 2010 election pledge.

The Coalition plan originally included a tax reduction for small businesses, but the nation’s top 3200 earning firms would pay a 1.5% levy to fund the Coalition’s paid parental leave scheme.

The Greens, who would obviously support any tax on miners, are refusing to allow the company tax rate reduction for large companies. As of yesterday, they were supporting the reduction for businesses with a turnover of less than $2 million, and were considering the reduction for businesses under $5 million.

At the time, the Coalition decided that although it opposed the mining tax, it could not be seen to oppose company tax cuts.

The Henry Tax Review had originally recommended a tax cut from 30% to 25% for businesses. However, there are budget constraints on doing this right away. The Senate will likely pass the new mining tax legislation by the end of next week, but the associated company tax rate cuts will be part of budget legislation introduced to the House of Representatives on the second Tuesday of May.

The Senate, with it’s new will pass the mining tax legislation by the end of next week but the company tax cuts will be subject to separate budget legislation and are likely to be incorporated with other measures to help businesses cope with the pressures of the mining boom.