The Greens have vowed to use their new prominence and power to seek the removal of upfront tax breaks for managed investment schemes – a goal that is likely to win support from rural independents.
According to The Australian Financial Review, Senator Christine Milne labelled the agribusiness and forestry schemes as "tax rorts" and said it would "absolutely" be a priority for the Greens in the new parliament to seek to have the tax deductions abolished.
"I'm totally opposed to the 100 per cent tax deductions for managed investment schemes [MIS] and have previously moved in the Senate on that," she said. "People in rural Australia know the tax deduction is a disaster."
Her comments on MIS were part of an appeal to farmers to understand that the new political landscape – with the Greens and the independents holding the balance of power in both houses – offered an opportunity for significant rural policy changes.
Senator Milne made this case at a National Farmers' Federation conference yesterday, but Coalition Agriculture spokesman John Cobb warned at the conference in Melbourne that if Labor governs with support from the Greens, farmers would face higher costs and the introduction of a carbon tax.