The Federal Government’s Minerals Resources Rent Tax (MRRT) has passed the lower house in a late-night deal struck between the government and the Federal Greens.

 

That tax will see companies that post in excess of $75 million pay the tax, up from the original $50 million threshold after Tasmanian Independent Andrew Wilkie demanded the alterations.  Mr Wilkie argued that the increased threshold would protect smaller mining companies from excessive taxation.

 

The Greens, who acted as the lynchpin for the bill’s passage, demanded that the Federal Government assure that the $20 million shortfall that resulted from Wilkie’s demands not be sourced from cuts to essential services such as schools and hospitals.

 

The bill will now be presented to Senate early next year, with the Federal Opposition vowing to repeal the tax if they take power in the next election.

 

The Government's resource taxation reforms will aim to support:

  • A major new tax break for Australia's 2.7 million small businesses as well as a cut to the company tax rate for all businesses, with small businesses getting a one year head-start.
  • A boost to the superannuation for 8.4 million workers, which will increase the nation's savings pool by $500 billion by 2035. This will provide a 30-year-old worker on average earnings with an extra $108,000 in retirement savings.
  • A much needed extra superannuation contribution for 3.6 million low-income-earners worth a total of $900 million each year.
  • Critical investment in roads, bridges and other infrastructure, particularly in our great mining regions.