The Australian Greens have announced they propose to introduce a Bill in the Senate on Tue 11.9.2012 – the Minerals Resource Rent Tax (Protecting Revenue) Amendment Bill 2012 – which aims to plug what they claim is a “mining tax loophole” by locking in the state royalty rebate for the mining tax at the level it was on 1 July 2011. The Greens are concerned that States could increase their mining royalties and, under the MRRT legislation, the Commonwealth Government would foot the bill. The announcement was made ahead of the Qld Budget, which was handed down on Tue 11.9.2012 and contains an increase in state mining royalties.
As at the time of going to press, the Bill had not been introduced
Source: Australian Greens media release, 11 September 2012
[LTN 176, 11/9]
Greens introduce Bill to peg mining tax rebate on State royalties
The Minerals Resource Rent Tax Amendment (Protecting Revenue) Bill 2012 was introduced into the Senate late on Wed 12.9.2012 by the Greens. The stated purpose of the Bill is to “protect the revenue generated from the Minerals Resource Rent Tax from being eroded by state governments increasing royalties”. The Greens claim the Government’s mining tax laws have effectively given the states and territories a “blank cheque” to raise mining royalties by promising to rebate the cost of all royalties to the mining companies. The Bill would restrict the rebating of royalties to those in place as at 1 July 2011.
DATE OF EFFECT: proposed to commence on the day the Bill receives Royal Assent and would apply to MRRT assessments from its first year of operation ie 2012-13.
[LTN 178, 13/9]