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Senate should repeal Minerals Resource Rent Tax: industry

18 July, 2014

The Australian minerals industry has urged the Senate to repeal the Minerals Resource Rent Tax (MRRT).

The MRRT was never necessary for Australians to share in the benefits of the Millennium mining boom, according to the Minerals Council of Australia, who suggest the rationale for the MRRT was "always based on a false premise".

In a statement released Friday (18 July), the Minerals Council of Australia Chief Executive Brendan Pearson asserted: "Company tax and royalties from Australia's mining industry have generated a revenue windfall for all levels of government since the start of the boom. Despite accounting for about ten per cent of GDP, the Australian mining sector accounts for a quarter of corporate tax receipts.

"Figures from Deloitte Access Economics (DAE) show that since 2006-07 the Australian mining sector has paid more than $115 billion in company tax and royalties. The DAE research also shows the industry paid an effective tax rate of more than 40 per cent," Pearson said.

"The MRRT imposes an unnecessary additional burden on Australia's mining industry and acts as a disincentive to invest in the minerals sector at a time when the industry is facing pressing challenges to improve productivity and cost competitiveness.

"Repeal of the MRRT will help improve Australia's reputation as an attractive investment destination in the highly competitive global resources market.

"A strong, growing industry attracting investment will secure prosperity, jobs and higher government revenues for Australia into the future," the council said.

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danny white | Monday, July 21, 2014, 12:28 PM
Interesting that industry and the current govt want to repeal the MRRT, but no one blinked an eye-lid when Joe Hockey expanded the Petrol Resource Rent Tax from off-shore oil to on-shore gas deposits. The tax has been in place since 1984, and I don't recall companies exploring for gas saying it was creating sovereign risk when it was recently expanded. Why is it good and valuable for gas and petroleum but not for other natural resources we're blessed with? Self interest rules the commonwealth again I suppose.