The Federal Government has introduced the controversial minerals resource rent tax (MRRT) llegislation before parliament, with Acting Prime Minister Wayne Swan describing the legislative package as ‘an historic reform’.

 

The government introduced the legislation, which contains ten bills, despite still not having the numbers to pass it through the lower house.

 

If passed, the legislation will see a 30 per cent tax on the profits of coal and iron ore miners, beginning from July 1, 2012.

 

Funds raised from the MRRT are expected to fund the following:

 

  • A tax break for Australia’s 2.7 million small businesses as well as a cut to the company tax rate for all businesses;
  • A boost to the superannuation savings of 8.4 million workers, which will increase the nation’s pool of retirement savings by $500 billion by 2035;
  • Extra superannuation contribution for lowest paid workers; and
  • Investment in roads, bridges and other infrastructure, particularly in mining regions. 

 

“Mining is a great Australian industry that is continuing to power ahead in full knowledge of the MRRT – mining companies generated massive profits of $92.8 billion in the year to June and have plans to invest $430 billion to further grow their industry,” Federal Minister for Resources and Energy Martin Ferguson said.