MRRT goes before parliament
The Federal Government has introduced the controversial minerals resource rent tax (MRRT) legislation, comprising ten bills, before parliament despite still not having the numbers to get it passed in the lower house.
If passed, the legislation will see a 30 per cent tax on all the profits of coal and iron ore miners beginning from July 1, 2012. Companies with MRRT profits of less than $50 million a year will have a low profit offset that wipes out their MRRT liability.
Introducing the legislation, Assistant Treasurer Bill Shorten said mining profits have jumped 262 per cent in the last decade, and much of these profits are shipped off overseas.
"The current arrangements fail to provide an appropriate return for these non-renewable resources to the Australian community who owns the resources 100 per cent," he said.
Funds raised from the MRRT are expected to fund the following:
- A tax break for Australia’s small businesses as well as a cut to the company tax rate for all businesses;
- A boost to the superannuation of 8.4 million workers, from 9% to 12%, which will increase the nation’s pool of retirement savings by $500 billion by 2035;
- An extra superannuation contribution for the lowest paid workers; and
- investment in roads, bridges and other infrastructure, particularly in mining regions.