Reasonable for states to challenge MRRT, Abbott says

10/07/2012 - Opposition Leader Tony Abbott says the states are entitled to challenge the federal government's mining tax, an impost the coalition would repeal in office.

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The Queensland Liberal National Party (LNP) government has decided to join Fortescue Metals Group in challenging the minerals resource rent tax (MRRT) in the High Court.

"There is no doubt that the mining tax is bad for the Australian states," Abbott told reporters in Perth on Monday, adding coalition would get rid of the impost should it win government.

"There is no doubt that the mining tax particularly targets the resource rich states, and if the states in question wish to challenge in court, that's a perfectly reasonable thing for them to do."

Asked why the Western Australian government had not joined in the legal challenge, Abbott said it was a matter for individual states to make decisions based on the legal advice.

Deputy Opposition Leader Julie Bishop said during her recent trip to Africa many people there were seeking investment for mining and resource work in that country because Australia was no longer the attractive destination it once was because of the mining and carbon taxes.

"Sovereign risk is now being mentioned in the same phrase as Australia and that is a deep concern," she said.

Source: AAP

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