INTRODUCTION OF LEGISLATION TO REPEAL THE MINERALS RESOURCE RENT TAX

The minerals industry welcomes the introduction today of legislation to repeal the Minerals Resource Rent Tax (MRRT) in line with the Government’s election commitment to abolish the tax.

The MRRT imposed an unnecessary additional impost on Australia’s mining industry and its repeal is all the more important when the industry is facing pressing challenges to improve productivity and cost competitiveness to encourage continued investment and growth.

The MCA has consistently argued the MRRT was unnecessary to ensure Australians shared in the Millennium mining boom. As the Treasurer noted in his Second Reading Speech, mineral resources companies will continue to pay their fair share of tax through State royalties and company tax.

Australia’s mining industry has paid almost $117 billion in company tax and State royalties since 2006-07 and faces a high and stable effective tax rate in excess of 40 per cent.

Repeal of the MRRT will help improve Australia’s reputation as a premier investment destination in the highly competitive global resources market. A competitive, growing industry attracting investment will secure prosperity, jobs and higher government revenues for Australia into the future.

The MCA appreciates the Government’s consultation process on the draft legislation that has helped to ensure compliance costs and transitional arrangements associated with the MRRT’s repeal are kept to a minimum.

The industry urges Members and Senators to recognise the authority the electorate has given the Coalition Government to abolish the mining tax.

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