Yesterday’s repeal of the Mining Resources Rent Tax (Mining Tax) by the federal Senate has been whole-heartedly welcomed by Australia’s biggest resources industry groups, with the tax labelled as ‘unnecessary’ and an ‘irresponsible barrier to investment’.
Steve Knott, Chief Executive of the AMMA (Australian Mines and Metals Association) said that the tax, “provided no benefit to the wider community and impacted Australia’s international reputation as an attractive place to invest, do business and employ people.”
“Suggestions the mining industry doesn’t pay its way from a taxation point of view have been proven mischievous, with Deloitte recently finding the industry has paid $117bn in company tax and royalties alone since 2006/07,” Mr Knott said.
“Repealing the Mining Tax doesn’t provide us with a competitive edge, but it does get us back on a level playing field and better supports Australian enterprises to pursue efficiencies, innovate, and compete in a highly globalised marketplace.”
Jason Kuchel, Chief Executive SACOME (South Australian Chamber of Minerals and Energy) said, “The MRRT was an unfair and inefficient tax, and discriminated against South Australia in particular due to the vast amounts of magnetite iron ore here, much of which requires benefication to enable export – unlike hematite found in the Pilbara. The MRRT would affect magnetite miners more than their hematite counterparts.
“The MRRT imposed an unnecessary burden on the mining industry in the face of substantial global challenges. The annual Fraser Institute survey of mining companies illustrates the sharp decline in confidence and investment attractiveness after the MRRT was introduced in 2010,” Mr Kuchel said.
“SACOME believes mining companies pay their fair share of taxes and royalties through the various state and federal systems alread in place; in South Australia this can be as high as 45% – well above any other industry.”
A statement released by the NSW Minerals Council said, “The mining tax is a dead weight on our state’s largest commodity export industry. It has failed to raise any significant revenue for taxpayers and acted in unison with the carbon tax as a disincentive for job-generating mining investment in NSW.”Mining has a solid future in NSW, but only if governments get the policy settings right. This tax is a very poor policy. At a time when NSW is struggling to attract mining capital investment, its repeal by the national Parliament will remove one obstacle to further investment.”