|
|
| Line 1: |
Line 1: |
| {{Use dmy dates|date=August 2011}}
| | I am 21 years old and my name is Senaida Beatham. I life in Warszawa (Poland).<br><br>My webpage [http://www.thehtmlguide.com/members/kirst5895/activity/689833/ нажмите здесь сейчас] |
| {{Use Australian English|date=August 2011}}
| |
| The '''Minerals Resource Rent Tax''' ('''MRRT''') is a tax on profits generated from the exploitation of [[non-renewable resource]]s in Australia.<ref name="StatementJuly2010">{{cite news|title=Full statement and detail of new mining tax|url=http://www.theaustralian.com.au/politics/full-statement-and-detail-of-new-mining-tax/story-e6frgczf-1225887000521|accessdate=2 July 2010|newspaper=The Australian|date=2 July 2010}}</ref> It was a replacement for the proposed '''Resource Super Profit Tax''' ('''RSPT''').
| |
| | |
| The tax, levied on 30% of the "super profits" from the mining of iron ore and coal in Australia, was introduced on 1 July 2012.<ref name=StatementJuly2010 /> A company was to pay the tax when its annual profits reach $75 million, a measure designed so as not to burden small business.<ref name="canmt"/> The original threshold was to be $50 million until independent MP [[Andrew Wilkie]] negotiated an amendment.<ref name="mtbplw">{{Cite news |url=http://www.abc.net.au/news/2011-11-23/mining-tax-passes-lower-house/3687770 |title=Mining tax bills pass Lower House |accessdate=17 January 2012 |date=23 November 2011 |work=ABC News |publisher=Australian Broadcasting Corporation }}</ref> Around 320 companies will potentially be affected by the changes.<ref name="anrtr"/>
| |
| | |
| On December 9 2013, it was announced that as the tax never raised anywhere near what was predicted, many believed had a negative impact on investment in mining projects and that in practice had significant compliance costs. It is now expected to be repealed. It is predicted that the repeal of this tax will save the government $13.4 billion.<ref>http://www.lexology.com/library/detail.aspx?g=c68c8a64-70a6-48fa-a96d-8606a8fdc396</ref>
| |
|
| |
| | |
| | |
| ==Introduction==
| |
| | |
| ===Background===
| |
| The RSPT was initially announced as part of the initial response to the Australia's Future Tax System review, known as the [[Henry Tax Review]], by the [[Treasurer of Australia|Treasurer]], [[Wayne Swan]] and the then [[Prime Minister of Australia|Prime Minister]], [[Kevin Rudd]]. The tax is similar in concept, although different in operation, to the existing ''Petroleum Resource Rent Tax'' levied on off-shore petroleum extraction activities. The ''Petroleum Resource Rent Tax'' is to be extended to all Australian onshore and offshore oil and gas projects as part of the new framework.<ref name="anrtr">{{cite web |url=http://www.futuretax.gov.au/content/Content.aspx?doc=FactSheets/resource_tax_regime.htm |title=A New Resource Taxation Regime |publisher=Commonwealth Of Australia |accessdate=17 January 2012 }}</ref>
| |
| | |
| The RSPT was to be levied at 40% and applied to all extractive industry including gold, nickel and uranium mining as well as sand and quarrying activities. The tax was replaced by the MRRT following the appointment of [[Julia Gillard]] as [[Prime Minister of Australia]] in late June 2010.<ref name="Differences">{{cite news|title=RSPT v MRRT - the differences|url=http://www.theage.com.au/business/rspt-v-mrrt--the-differences-20100702-zs7a.html?rand=1278035409262|accessdate=2 July 2010|newspaper=The Age|date=2 July 2010}}</ref> Gillard made implementation of the tax her first priority.<ref name="mtf">{{Cite news |url=http://news.brisbanetimes.com.au/breaking-news-national/mining-tax-faces-one-more-hurdle-20120206-1r1r3.html |title=Mining tax faces one more hurdle |accessdate=16 February 2012 |date=6 February 2012 |work=Brisbane Times |publisher=Fairfax Media }}</ref>
| |
| | |
| The controversy regarding the RSPT was such that an "ad war" between the government and mining interests began in May 2010<ref>{{cite web|url=http://www.news.com.au/national/kevin-rudd-defends-mining-ads/story-e6frfkvr-1225872937660 |title=Kevin Rudd defends mining ads: News.com.au 29 May 2010 |publisher=News.com.au |date=29 May 2010 |accessdate=2010-08-29}}</ref> and continued until the downfall of [[Prime Minister of Australia|Prime Minister]] [[Kevin Rudd]] in June 2010.<ref>{{cite web|author=AAP |url=http://money.ninemsn.com.au/article.aspx?id=1075600 |title=Mining stocks soar as RSPT ads axed: NineMSN 24 June 2010 |publisher=Money.ninemsn.com.au |date= |accessdate=2010-08-29}}</ref> The [[Australian Electoral Commission]] released figures indicating mining interests had spent $22 m in campaigning and advertisements in the six weeks prior to the end of the Rudd prime ministership.<ref>[http://www.smh.com.au/business/a-snip-at-22m-to-get-rid-of-pm-20110201-1acgj.html A snip at $22m to get rid of PM: SMH 2 February 2011]</ref> Mining interests re-introduced the advertisements arguing against the proposed revised changes during the [[Australian federal election, 2010|2010 federal election]] campaign.<ref>{{cite web|author=24 July 2010 12:00AM |url=http://www.theaustralian.com.au/national-affairs/miners-launch-new-war-on-julia-gillards-tax/story-fn59niix-1225896299032 |title=Miners launch new war on Julia Gillard's tax: The Australian 24 July 2010 |publisher=Theaustralian.com.au |date=24 July 2010 |accessdate=2010-08-29}}</ref>
| |
| | |
| ===Mining industry and political response===
| |
| The response to the MRRT was mostly divided into supporter and opposition groups consisting of Federal government and opposition parties, lobby groups and the various stakeholders.
| |
| | |
| The tax received support from the [[Australian Council of Trade Unions]], mining unions such as the [[Construction, Forestry, Mining and Energy Union]] and conditional support from the [[Australian Greens]]. Unlike the RSPT,<ref>{{cite news |title=BHP calls for RSPT to be scrapped |author=Neil Sands |url=http://www.theaustralian.com.au/business/mining-energy/bhp-calls-for-rspt-to-be-scrapped/story-e6frg9df-1225878408197 |newspaper=The Australian |date=11 June 2010 |accessdate=19 November 2011}}</ref> mining companies [[BHP Billiton]] and [[Rio Tinto Group]] have not publicly opposed the MRRT
| |
| | |
| Those opposing the tax include the mining industry, resource and mining organisations such as [[Fortescue Metals Group]], [[Xstrata]] and [[Hancock Prospecting]], mining lobby groups and the federal opposition (Liberal Party and National Party). [[Andrew Forrest]] has stated that the tax "will reduce investment in Australia".<ref name="canmt"/> Mining magnate [[Gina Rinehart]], listed by Forbes Australia in 2011 as Australia's wealthiest person,<ref>Treadgold, Tim (2 February 2011). "Miner's Daughter". Forbes: Australia's 40 Richest. Retrieved 10 September 2011.</ref> is a fierce opponent of the tax, arguing that it will drive away billions of dollars of investment.<ref name="rpraf">{{Cite news |url=http://www.theaustralian.com.au/media/rinehart-pitted-against-fairfax-boss/story-e6frg996-1226260018798 |title=Raid pits Rinehart against Fairfax boss on mine tax |author=Andrew Burrell & Joe Kelly |accessdate=17 February 2012 |date=2 February 2012 |newspaper=The Australian |publisher=News Limited }}</ref>
| |
| | |
| Advertisements supporting or attacking the proposed tax ran on commercial television and in major newspapers. Funding for the mining lobby's advertisements came from the largest resource companies<ref name="Cleary">Cleary, P. 2011, Too Much Luck; The Mining Boom and Australia's Future, Black Inc; Collingwood, Victoria</ref> whilst funding for the Federal government's advertisements came from the consolidated revenue fund.{{Citation needed|date=July 2010}} Julia Gillard ceased the government's advertising after becoming prime minister and the mining lobby ended their ads shortly thereafter.
| |
| | |
| ===Passing of the Bill===
| |
| On 23 November 2011 the tax passed through the [[Australian House of Representatives|lower house]] with the support of the Greens and independent MP [[Andrew Wilkie]].<ref name="Herald Sun 23/11/11">{{cite web |url=http://www.heraldsun.com.au/news/more-news/greens-agree-to-pass-mining-tax/story-fn7x8me2-1226203083697 |title=Mining tax passes lower house after Julia Gillard, Greens strike deal |first=Phillip |last=Hudson |publisher=Herald Sun |date=23 November 2011 |accessdate=23 November 2011}}</ref> Independent MP [[Tony Windsor]] supported the Bill on the condition that a committee be set up to independently assess the environmental risks posed by [[coal seam gas]] extraction.<ref name="wwa">{{Cite news |url=http://www.abc.net.au/news/2012-01-28/appointments-made-to-csg-committee/3798234 |title=Windsor welcomes appointments to mining committee |accessdate=28 January 2012 |date=28 January 2012 |work=ABC News |publisher=Australian Broadcasting Corporation }}</ref>
| |
| | |
| The tax was passed by the [[Australian Senate|Senate]] on 19 March 2012 by 38 votes to 32, with support of the Greens.<ref name="SMHMar2012">{{cite web |url=http://m.smh.com.au/environment/climate-change/mining-tax-passes-the-senate-20120319-1vg50.html|title=Mining tax passes the Senate|publisher=The Sydney Morning Herald |date= 19 March 2012 |accessdate=17 July 2012}}</ref>
| |
| | |
| ==Levy==
| |
| | |
| MRRT is calculated separately for each mining project interest,<ref>''Minerals Resource Rent Tax Act 2012'', s. 10-1</ref> according to the formula
| |
| | |
| <math>MRRT = A(B-C) - D - E</math><ref>''MRRTA'', s. 10-5</ref>
| |
| | |
| where
| |
| | |
| :* ''MRRT'' = MRRT liability (which cannot be less than nil)
| |
| :* ''A'' = MRRT rate
| |
| :* ''B'' = mining profits
| |
| :* ''C'' = MRRT allowances
| |
| :* ''D'' = low profit offset
| |
| :* ''E'' = rehabilitation tax offsets
| |
| | |
| ===Rate===
| |
| | |
| The MRRT rate was initially set at 22.5%, being the result of the formula
| |
| | |
| <math>MRRT rate = 30%( 1 - Extraction factor)</math><ref name = ""ImpGen">''Minerals Resource Rent Tax (Imposition—General) Act 2012'', s.4</ref>
| |
| | |
| where the extraction factor is set at 25%.<ref name = ""ImpGen"/>
| |
| | |
| ===Profits and allowances===
| |
| | |
| Where a mining project interest's mining profit is negative, it is deemed to be nil for MRRT purposes.<ref>''MRRTA'', s. 25-5</ref>
| |
| | |
| MRRT allowances are available for deduction against mining profits in the following order:<ref>''MRRTA'', s. 10-10</ref>
| |
| | |
| #Royalty allowance
| |
| #Transferred royalty allowance
| |
| #Pre‑mining loss allowance
| |
| #Mining loss allowance
| |
| #Starting base allowance
| |
| #Transferred pre‑mining loss allowance
| |
| #Transferred mining loss allowance
| |
| | |
| Currently additional compliance costs for this tax to the mining sector is running into the many millions of dollars.<ref name="theaustralian.com.au">http://www.theaustralian.com.au/business/opinion/labor-leads-economy-in-the-wrong-direction/story-e6frg9if-1226698062140</ref>
| |
| | |
| ===Low profit offset===
| |
| | |
| Where the miner has a group mining profit of less than $125 million, a low profit offset is available so that:
| |
| | |
| :* MRRT liability is nil where the group mining profit is less than $75 million<ref>''MRRTA'', s. 45-5</ref>
| |
| :* where the group mining profit is between $75 million and $125 million, a special calculation is used for determing the miner's liability, allocating group profits and allowances<ref>''MRRTA'', s. 45-10</ref>
| |
| | |
| ===Rehabilitation tax offset===
| |
| | |
| Where a mining project interest or pre‑mining project interest is winding down or has ended, a rehabilitation tax offset can arise if upstream rehabilitation expenditure has occurred which would not otherwise be taken into account in determining MRRT liability.<ref>''MRRTA'', ss. 225-15, 225-20</ref>
| |
| | |
| ==Expected impact==
| |
| $22.5 billion was expected to be raised over the first four years of the tax,<ref>{{cite web|last=Ker|first=Peter|title=Mining tax embarrassment as Rio funds returned|url=http://www.smh.com.au/business/mining-tax-embarrassment-as-rio-funds-returned-20130808-2rku4.html|publisher=Sydney Morning Herald|accessdate=21 August 2013}}</ref> which were to be spent on pensions, tax cuts for small businesses and infrastructure projects, particularly in Queensland and Western Australia.<ref name="canmt">{{Cite news |url=http://www.bbc.co.uk/news/business-15850019 |title=Can Australia's new mining tax achieve its objective? |author=Phil Mercer |accessdate=17 January 2012 |date=23 November 2011 |work=BBC News |publisher=British Broadcasting Corporation }}</ref>
| |
| | |
| Opposition to the tax was cited by many commentators{{Who|date=July 2010}} as one reason for the [[Australian Labor Party leadership election, 2010|replacement in June 2010]] of the then Prime Minister, [[Kevin Rudd]] by his deputy, Julia Gillard. Soon after Gillard's appointment as Prime Minister, the Government reached an agreement with several of the largest mining firms, BHP Billiton, Xstrata and Rio Tinto,<ref name="mtf"/> on changes which were announced on 2 July 2010.{{Citation needed|date=July 2010}} Negotiations with smaller companies did not take place at this time.{{Citation needed|date=July 2010}}
| |
| | |
| The changes lead to a reduction in the amount of revenue expected to be raised by the tax and offsetting reductions in the tax breaks the MRRT will fund, for example; the proposed company tax reduction was halved due to the reduction in revenue to be collected from the tax, along with reductions in other areas.
| |
| | |
| ==Actual revenue==
| |
| | |
| In May 2012, budget, it was claimed it would bring in $3 billion for the financial year, in October 2012, the figure was reduced to $2 billion, on 14 May 2013, the receipts are announced that they were expected to be $200 million, much less than the $3 billion predicted in May 2012.<ref>http://www.smh.com.au/business/federal-budget/mining-tax-revenue-slumps-20130514-2jkm1.html#ixzz2TGVDRaYr</ref>
| |
| | |
| On 12 February 2013, Labor minister [[Kevin Rudd]], one the authors of the tax, stated that "Wayne Swan and Julia Gillard must bear the responsibility for Labor's mining tax and deal with the consequences its near non-existent revenue"<ref>http://www.theaustralian.com.au/national-affairs/in-depth/kevin-rudd-blames-wayne-swan-for-mining-tax-flaw/story-fnb56a2t-1226575977480</ref> as the expected revenue has not materialised. It raised $126 million in the first six months since its introduction.<ref name="srmtr">{{Cite news |url=http://www.sbs.com.au/news/article/1735060/Swan-reveals-mining-tax-revenue |title=Swan reveals mining tax revenue |accessdate=14 February 2013 |date=8 February 2013 |work=AAP via SBs }}</ref>
| |
| | |
| In August 16, 2013, in its Pre-election Economic and Fiscal Outlook by the Treasury and Finance departments there was an increase in forecasts for tax receipts over the next four years to almost $6 billion still way below its original projection of $22.5 billion.<ref>http://www.theage.com.au/business/the-economy/forecast-bumps-up-mining-tax-intake-20130813-2ru78.html#ixzz2cf3AQF1B</ref> Currently the government is paying back several of pre-payments already made for this tax.<ref name="theaustralian.com.au"/>
| |
| | |
| The tax is also proving to be a complex and costly to administer for the government. Current cost is more than $50m setting up administering the tax with an ongoing annual cost of administration estimated of $20m a year. On top of that there was an advertising cost of nearly $40m.<ref name="theaustralian.com.au"/>
| |
| | |
| ==Constitutionality==
| |
| | |
| In 2012, [[Fortescue Metals Group]] and several of its subsidiaries launched a lawsuit with respect to the MRRT's validity under the [[Constitution of Australia]]. On 7 August 2013, the [[High Court of Australia]] unanimously rejected the claim,<ref>{{cite AustLII|litigants=Fortescue Metals Group Limited v The Commonwealth|link=|court=HCA|num=34|year=2013|pinpoint=|parallelcite=|date=7 August 2013|courtname=|juris=}}</ref><ref>{{cite web|title = Mining tax beats challenge ... and what it means for you|url = http://www.claytonutz.com/publications/news/201308/07/mining_tax_beats_challenge_and_what_it_means_for_you.page|date = 7 August 2013|publisher = [[Clayton Utz]]|accessdate = 8 August 2013}}</ref> declaring that the tax did not:
| |
| | |
| :* discriminate between the States of the Commonwealth of Australia contrary to [[Constitutional basis of taxation in Australia|s. 51(ii)]],
| |
| :* give preference to one State of the Commonwealth of Australia over another State contrary to s. 99,
| |
| :* prevent the States from aiding mining activity under s. 91, or
| |
| :* curtail [[Intergovernmental immunity (Australia)|State sovereignty]] contrary to the ''[[Melbourne Corporation v Commonwealth|Melbourne Corporation]]'' principle.
| |
| | |
| ==Repeal effort==
| |
| | |
| Following the [[Australian federal election, 2013|2013 election]], a bill was introduced by the [[Coalition (Australia)|Coalition government]] to repeal the MRRT on 13 November 2013 which passed through all stages in the [[Australian House of Representatives|House of Representatives]] by 20 November.<ref>{{cite web|title = Minerals Resource Rent Tax Repeal and Other Measures Bill 2013|url = http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5142|publisher = [[Parliament of Australia]]}}</ref> It is currently being considered by the [[Australian Senate|Senate]].<ref>{{cite web|title = Lower House passes bill to repeal mining tax, but hostile Senate awaits|url = http://www.abc.net.au/news/2013-11-21/mining-tax-repeal-passes-lower-house/5106728|publisher = [[Australian Broadcasting Corporation]]|date = 21 November 2013}}</ref>
| |
| | |
| ==See also==
| |
| {{Portal|Australia|Mining}}
| |
| *[[Mining in Australia]]
| |
| | |
| ==References==
| |
| {{reflist|3}}
| |
| | |
| ==Further reading==
| |
| * [http://www.comlaw.gov.au/Details/C2012C00571 ''Minerals Resource Rent Tax Act 2012'']
| |
| * [http://www.comlaw.gov.au/Details/C2012A00017 ''Minerals Resource Rent Tax (Imposition—General) Act 2012'']
| |
| * [http://www.comlaw.gov.au/Details/C2012A00015 ''Minerals Resource Rent Tax (Imposition—Customs) Act 2012'']
| |
| * [http://www.comlaw.gov.au/Details/C2012A00016 ''Minerals Resource Rent Tax (Imposition—Excise) Act 2012'']
| |
| * [http://www.comlaw.gov.au/Details/C2012C00446 ''Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012'']
| |
| | |
| ==External links==
| |
| * {{cite web|title = Minerals resource rent tax – Introduction|url = http://ato.gov.au/Business/Minerals-resource-rent-tax/|publisher = [[Australian Taxation Office]]|accessdate = 8 August 2013}}
| |
| * [http://www.miningnewspremium.net/siteincludes/feature_miningsupertax.asp News articles on Mining Super Tax]
| |
| | |
| {{Economy of Australia}}
| |
| | |
| [[Category:Taxation in Australia]]
| |
| [[Category:Mining in Australia]]
| |
| [[Category:2012 introductions]]
| |