The Senate Economics Legislation Committee has completed its inquiry into the Minerals Resource Rent Tax Bill 2011 and 10 related bills. The report was tabled in the Senate on Wed 14.3.2012.
The Bills seek to introduce the Minerals Resource Rent Tax (MRRT) and extend the coverage of the existing Petroleum Resource Rent Tax (PRRT). The Bills also seek to make a number of changes to the superannuation and business tax systems which the Government has linked to the revenue expected to be gained from the MRRT – this includes:
- superannuation – increasing the superannuation guarantee charge from 9% to 12%, removing the age limit associated with these contributions, and introducing a government superannuation contribution for low income earners; and
- small business taxation – abolishing the entrepreneurs’ tax offset, increasing the small business instant asset write-off threshold, simplifying asset depreciation, and introducing accelerated initial deductions for purchases of motor vehicles by small businesses.
The Committee recommended that the Senate pass the Bills. Although the Committee noted submissions from industry stakeholders, the Committee said it was of the view that the most appropriate time to consider amendments to the operation of the MRRT “is after it has been in place for a number of years and the first MRRT returns have been assessed, as recommended by the Policy Transition Group”. The Committee further said it was of the opinion that a review of the operation of the extended PRRT be undertaken “after it has been in place for an appropriate length of time”.
The Coalition Senators in their Dissenting Report recommended the Senate not pass the Bills. The Coalition Senators said the mining tax legislation was “deeply flawed, poorly designed and fiscally irresponsible”. They called on the Government “to engage in a fresh, more serious, more considered, more competent and more open, transparent and inclusive effort to pursue genuine root and branch reform of our tax system to make it simpler and fairer”.
[LTN 51, 15/3]