An elated Treasurer Joe Jockey made the announcement to the lower house during question time on Tuesday, following an agreement the federal government made with the Palmer United Party.
Hockey asserted its abolition was testament to the irrelevance of the modern Labor Party movement.
"The mining tax is now gone," he said to a chamber amid much clamouring.
"We said we'd get rid of the mining tax; we've delivered in full.
“It is testament to a failed Labor government, failed economic policy, failed taxation policy and a failed treasurer."
PM Tony Abbott said the mining tax was possibly the most "stupid" tax ever thought up.
In a statement released on Tuesday, Australian Mines and Metals Association (AMMA) Chief Executive Steve Knott said it was a tax which provided "no benefit to the wider community" and hindered Australia's investment reputation on an international level.
"Repealing the mining tax doesn't provide us with a competitive edge, but it does get us back on a level playing field and better supports Australian enterprises to pursue efficiencies, innovate, and compete in a highly globalised marketplace," Knot said.
"Disappointing" aspects
Business Council of Australia Chief Executive Jennifer Westacott said although the Senate repeal was a positive move for an industry facing productivity challenges, it was "disappointing" some provisions within the legislation still remained intact.
She said: "The whole process around the MRRT underscores the need for tax reform to be undertaken properly, rather than through ad hoc measures, and with the clear goals of ensuring governments have sufficient revenue for the future while creating an environment that supports jobs and investment."
The Bill still requires the tick of approval in the House of Representatives, where the government has the numbers.
