Sydney (AFP) - Australia on Tuesday agreed to scrap a contested resources profits tax after the government struck a surprise deal with crossbench senators, including mining tycoon Clive Palmer.The Minerals Resource Rent Tax (MRRT) was introduced by the previous Labor administration in 2012, with a levy on annual profits above Aus$75 million (US$70 million) on iron ore and coal at a rate of 30 percent.It was intended to return a share of the spoils of Australia's decade-long mining boom to government coffers but was widely criticised after its revenues fell dramatically short of forecasts."The mining tax is now gone," triumphant Treasurer Joe Hockey told parliament after the Senate, where minor parties hold the balance of power, voted 36 to 33 for its repeal, a key election promise of the Tony Abbott-led conservatives.It now heads to the lower house where it is guaranteed passage as the government has the numbers to push it through."We said we'd get rid of the mining tax; we've delivered in full," added Hockey."The tax package was so poorly designed, it was in fact costing the government billions of dollars each year."The tax regime was initially watered down after a furious publicity campaign by BHP Billiton, Rio Tinto and Fortescue, which contributed to then prime minister Kevin Rudd being ousted by his deputy Julia Gillard in 2010 as opinion poll ratings plunged.The big miners claimed the tax hurt their competitiveness and affected investment.The Labor government originally estimated that the levy would raise Aus$3.0 billion in its first year of operation and Aus$9.0 billion in 2013-14.That was drastically scaled back and according to the 2013 budget the MRRT raised just Aus$200 million in the 2013 financial year and was forecast to bring in Aus$700 million in the 12 months to June 30, 2014. - Deal with mining magnate - Scrapping the tax was made possible after the government struck a deal with minor parties led by the Palmer United Party, whose powerbroker leader is a coal magnate.Palmer always wanted the tax gone but said he would not support a repeal unless crucial initiatives to assist families -- which were threatened by budget cuts -- were left unchanged.
Comment on Australia axes contested mining tax
Martin Parry, Business Insider
Tue, 09/02/2014 - 12:58am
Welcome to Wopular
Wopular is an
online newspaper rack,
giving you a summary view of the top headlines from the top news sites.
Senh Duong (Founder)
Wopular,
MWB,
RottenTomatoes
MoviesWithButter : Our Sister Site
- "Expendables 4" Starts Shooting This Fall, Says Randy Couture at the Arnold Sports Festival more
- “Expendables 4” Gets Funding Interest from “Ip Man 3” Financier more
- "Ip Man 3" Distributor Suspected of Box Office Fraud, Parent Company Loses $200M in Market Cap more
- Yen Targets "Ip Man 4" for 2018 Release; Discusses Film with Director, Producer more
- "Ip Man 3" Shatters Expectations with $72M Opening [China Box Office] more