Aussie gov produces draft repeal of mining tax

The Australian federal government has released draft legislation that would repeal the Minerals Resource Rent Tax (MRTT), a tax long opposed by recently elected Prime Minister Tony Abbott.

“The MRRT is a complex and unnecessary tax which struggled to raise the substantial revenue predicted by the former Government,’’ Treasurer Joe Hockey said today.

“Further still, this failed tax imposed significant compliance costs on one of our most important industries, while damaging business confidence which is critical to future investment and jobs.’’

“The former Government linked a number of spending measures to the failed MRRT…these came at a significant cost to the Budget, to the point where the Government is borrowing money to pay for these commitments."

“The repeal of the MRRT will contribute towards repairing some of the fiscal damage inflicted by the previous government on our nation’s finances.’’

The bill will be introduced to parliament in mid-November. Miners know that they are not out of the woods quite yet, as Labor and the Greens hold the balance in the senate until July 1, 2014.

For now, both Labor and the Greens remain opposed to tax repeal.

This is very concerning legislation," said Shadow Treasurer Chris Bowen. "We have a fundamental view in the Labor party that the minerals of Australia belong to Australians and there is an obligation on government to ensure wealth is spread right across Australia."

"Letting the billionaire miners off the hook will hurt small business and some of the most vulnerable in our community like low income earners and the unemployed," said Greens leader Christine Milne.