Minerals Resource Rent Tax: Implementation & transition issues

This Submission is made by the Minerals Council of Australia (MCA) in conjunction with the Chamber of Minerals and Energy of Western Australia, the Queensland Resources Council, the New South Wales Minerals Council, the South Australian Chamber of Mines and Energy, the Victorian Division of the MCA, the Tasmanian Minerals Council and the Northern Territory Division of the MCA (the Representatives).

The Australian minerals industry welcomes the opportunity to respond to the Issues Paper released by the Policy Transition Group (PTG) on 1 October 2010. The industry recognises the benefits of providing the PTG with a unified view on resource taxation reforms, in particular on the implementation and operation of the Minerals Resource Rent Tax (MRRT) announced by the Australian Government on 2 July 2010. The Representatives provided a unified view of its members in the industry Submission to the PTG lodged on 24 September 2010 (the first Submission), which was released publicly on 1 October 2010.

The first Submission is a technical design paper on the MRRT that sets out a design framework and a logical roadmap for key implementation issues and transition issues; information the PTG should look to in making its recommendation to the Government. It represents a genuine attempt by the industry to assist in the development of MRRT legislation that is, first and foremost, consistent with the negotiated Heads of Agreement of 2 July 2010 and the design principles on which it is based.

Following the release of the PTG Issues Paper, this second Submission reiterates and, where applicable, provides further guidance to the PTG on the industry’s views about the implementation and transition issues for the MRRT. The Representatives have provided this guidance by directly responding to questions raised in the Issues Paper with a view to providing a consistent view across interested parties. This unified position of minerals industry representative organisations does not restrict the scope for any of these organisations to make further submissions on matters specific to the interests of their respective memberships.

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