MARKETS

$60B shortfall in new tax

REPORTS have emerged the Gillard government will collect $A60 billion less in revenue over 10 years under its revised mining tax than in the original Resources Super-Profits Tax.

Staff Reporter
$60B shortfall in new tax

New figures released under freedom of information laws and posted on Treasury’s website on Monday, which the Australian Financial Review newspaper published yesterday, reveal that the Minerals Resource Rent Tax will collect more tax in its first year than the original RSPT.

But after the first year, revenue losses from the new tax start to climb.

In 2017-18, the MRRT is forecast to collect $3 billion, versus $14.5 billion under the RSPT. In the decade after the new tax begins in 2012-13, it is forecast to total $60.5 billion.

The figures show net MRRT revenue of $10.5 billion over the first two years of the tax compared with $7.4 billion noted in the government’s mid-year review.

The documents have raised questions about whether the government will have sufficient money to pay for other tax reforms linked to the MRRT, such as the plan to compulsorily increase superannuation and infrastructure spending.

The AFR quoted a spokesperson for Treasurer Wayne Swan as saying that the “government had always been up-front that the redesigned mining tax will generate significantly less revenue – there’s nothing new about this and we made this clear from the day the breakthrough deal was announced”

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalogue of 2022 Initial Resource Estimates and recent discovery successes.