Footnotes

Footnotes

Chapter 1 - Background and overview of the inquiry

[1]        Australian Government, Mid-Year Economic and Fiscal Outlook 2012-13, 22 October 2012, p. 305.

[2]        Australia's Future Tax System, Report to the Treasurer, part 2: detailed analysis, vol. 1, December 2009, p. 217.

[3]        The Hon Kevin Rudd MP and the Hon Wayne Swan MP, 'Stronger, Fairer, Simpler: A Tax Plan for Our Future,' joint media release, 2 May 2010, http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2010/028.htm&pageID=003&min=wms&Year=&DocType

[4]        The Hon Julia Gillard MP, the Hon Wayne Swan MP, joint press conference, 24 June 2010, http://www.pm.gov.au/press-office/joint-press-conference-deputy-prime-minister-wayne-swan.

[5]        The Hon Julia Gillard MP, the Hon Wayne Swan MP and the Hon Martin Ferguson AM MP, 'Breakthrough Agreement with Industry on Improvements to Resource Taxation,' joint media release, 2 July 2010, http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2010/055.htm&pageID=003&min=wms&Year=&DocType=.

[6]        The Hon Julia Gillard MP, the Hon Wayne Swan MP and the Hon Martin Ferguson AM MP, 'Breakthrough Agreement with Industry on Improvements to Resource Taxation.'

[7]        The Hon Wayne Swan MP and the Hon Martin Ferguson AM MP, 'Policy Transition Group Membership and Terms of Reference,' 3 August 2010, http://www.alp.org.au/federal-government/news/policy-transition-group-membership-and-terms-of-re/.

[8]        The Hon Wayne Swan MP and the Hon Martin Ferguson AM MP, 'Policy Transition Group Membership and Terms of Reference,' 3 August 2010.

[9]        The Hon Wayne Swan MP and the Hon Martin Ferguson AM MP, 'Policy Transition Group Membership and Terms of Reference,' 3 August 2010.

[10]      Policy Transition Group, New Resource Taxation Arrangements (December 2010), p. 57, http://www.futuretax.gov.au/content/Publications/downloads/New_Resource_Taxation_Arrangements_Report.pdf; and the Hon Martin Ferguson AM MP, 'Policy Transition Group Reports to Government,' media release, 21 December 2010, http://minister.ret.gov.au/MediaCentre/MediaReleases/Pages/PolicyTransitionGroupReportsToGovernment.aspx.

[11]      The Hon Wayne Swan MP and the Hon Martin Ferguson AM MP, 'Government Accepts Resource Tax Recommendations,' joint media release, 24 March 2011, http://minister.ret.gov.au/MediaCentre/MediaReleases/Pages/GovernmentAcceptsResourceTaxRecommendations.aspx.

[12]      The Hon Wayne Swan MP and the Hon Martin Ferguson AM MP, 'Government Accepts Resource Tax Recommendations,' joint media release, 24 March 2011.

[13]      The Hon Wayne Swan MP and the Hon Martin Ferguson AM MP, 'Exposure Draft – Minerals Resource Rent Tax,' joint media release, 10 June 2011, http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2011/065.htm&pageID=003&min=wms&Year=&DocType=. The draft legislation and explanatory material is available at http://archive.treasury.gov.au/contentitem.asp?NavId=&ContentID=2070.

[14]      The Hon Wayne Swan MP and the Hon Martin Ferguson AM MP, 'Second Exposure Draft – Minerals Resource Rent Tax,' joint media release, 18 September 2011, http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2011/111.htm&pageID=003&min=wms&Year=&DocType=. The second exposure draft and explanatory material is available at http://archive.treasury.gov.au/contentitem.asp?ContentID=2157&NavID=.

[15]      For information on the inquiry, including the final report, see http://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=economics/mineralstax/subs(2).htm.

[16]      For information on the inquiry, including the final report, see http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Completed%20inquiries/2010-13/MRRTBill2011/index.

[17]      The nominal rate of the MRRT is 30 per cent, but this is discounted by a 25 per cent extraction allowance.

[18]      All bolded terms are defined terms in the MRRT Act and related Acts.

[19]      MRRT Act, s. 20-5(1).

[20]      Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, pp. 3-4.

[21]      See Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, pp. 12-26, for detailed explanations of each of these cases.

[22]      MRRT Act, s. 30-25(1).

[23]      Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, p. 8.

[24]      MRRT Act, s. 30-25(3).

[25]      MRRT Act, s. 35-10.

[26]      Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, p. 76.

[27]      Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, pp. 77–79.

[28]      Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, p. 8.

[29]      For a more detailed explanation of the operation of mining allowances see Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, chapters 6 and 7, pp. 95–143.

[30]      Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, pp. 15.

[31]      Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, pp. 15.

[32]      The uplift rate is an annual interest allowance provided to compensate for risk where losses are required to be carried forward and offset against future project profits.

[33]      Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, p. 119.

[34]      Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, p. 119.

[35]      Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, p. 17.

[36]      Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, p. 17.

Chapter 2 - Explaining the revenue shortfall

[1]        Budget 2010-11, Budget Paper No. 1, Statement 5: Revenue, p. 21.

[2]        The Hon Julia Gillard MP, the Hon Wayne Swan MP and the Hon Martin Ferguson AM MP, 'Breakthrough Agreement with Industry on Improvements to Resource Taxation.'

[3]        Australian Government, Economic Statement, 14 July 2010, p. 31.

[4]        Treasury document, 'MRRT Model – delinked.xls,' FOI release No. 1962, 14 February 2011, http://archive.treasury.gov.au/documents/1962/PDF/MRRT_Model.pdf.

[5]        Secretary to the Treasury, Dr Ken Henry AC, and Secretary to the Department of Finance and Deregulation, Mr David Tune PSM, Pre-Election Economic and Fiscal Outlook 2010, 23 July 2010, http://www.treasury.gov.au/PublicationsAndMedia/Publications/2010/Pre-Election-Economic-and-Fiscal-Outlook-2010

[6]        Australian Government, Mid-Year Economic and Fiscal Outlook 2010-11, 9 November 2010, pp. 32, 283.

[7]        Australian Government, Budget 2011-12, Budget Paper No. 1, Statement 5: Revenue, p. 35.

[8]        Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, p. 4.

[9]        Australian Government, Mid-Year Economic and Fiscal Outlook 2011-12, 29 November 2011, p. 167.

[10]      Budget 2012-13, Budget Paper No. 1, Statement 5: Revenue, p. 20. 

[11]      Dr Martin Parkinson, Secretary, Treasury, Proof Committee Hansard, 3 April 2013, p. 28.

[12]      Economics Committee Hansard, Thursday, 14 February 2013, pp.51-52

[13]      Based on sources cited above. 

[14]      Senator Cormann, Proof Committee Hansard, Canberra, 3 April 2013, p. 49.

[15]      Proof Committee Hansard, Melbourne, 29 April 2013, p. 21.

[16]      Ms Stephanie Martin, Deputy Commissioner, Resource Rent Tax, Australian Tax Office, Proof Committee Hansard, Canberra, 3 April 2013, p. 48.

[17]      The Hon Wayne Swan MP, 'Minerals Resource Rent Tax revenue', media release, 8 February 2013, http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2013/019.htm&pageID=003&min=wms&Year=&DocType=0.

[18]      Australian Government, Budget 2011-12, Budget Paper No. 1, Statement 5: Revenue, p. 29.

[19]      Dr Martin Parkinson, Secretary, Treasury, Proof Committee Hansard, 3 April 2013, pp. 27, 38.

[20]      Rio Tinto, submission 8, p. 2.

[21]      Xstrata, submission 14, p. 2.

[22]      Proof Committee Hansard, Melbourne, 29 April 2013, p. 19.

[23]      BHP Billiton, submission 13, p. 2.

[24]      Mr Mitchell Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, Melbourne, 29 April 2013, p. 19.

[25]      Mr Tim Marney, Under Treasurer, Department of Treasury, Western Australia, Proof Committee Hansard, Perth, 8 April 2013, p. 34.

[26]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 7.

[27]      See chapter one for more detail on key differences between the 'book value' and 'market value' methods.

[28]      Peter Carey and Neil Fargher, 'Flaws in the mineral tax mean Australia may profit little from its resource wealth,' The Age, 16 February 2012, http://www.theage.com.au/opinion/society-and-culture/minings-small-change-20120215-1t6dr.html.

[29]      Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 13.

[30]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p. 6.

[31]      Professor Jonathan Pincus, Proof Committee Hansard, Canberra, 3 April 2013, p. 17.

[32]      Professor Pietro Guj, Proof Committee Hansard, Perth, 8 April 2013, p. 15.

[33]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 6.

[34]      Mr Stephen Pearce, Chief Executive Officer, Fortescue Metals Group, Proof Committee Hansard, Perth, 8 April 2013, p. 5.

[35]      Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 14.

[36]      Professor Henry Ergas, Proof Committee Hansard, Canberra, 3 April 2013, p. 24.

[37]      Mr Stephen Pearce, Chief Executive Officer, Fortescue Metals Group, Proof Committee Hansard, Perth, 8 April 2013, p. 5.

[38]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 1.

[39]      MCA, submission 10, p. 4.

[40]      Rio Tinto, Taxes paid in 2012: A report on the economic contribution made by Rio Tinto to public finances, March 2013, p. 9, http://www.riotinto.com/documents/RioTinto_taxespaidin2012.pdf.

[41]      Xstrata, submission 14, p. 2.

[42]      Mr Rob Heferen, Executive Director, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, p. 29; and Dr Martin Parkinson, Secretary, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, Canberra, p. 31.

[43]      Dr Martin Parkison, Proof Committee Hansard, Canberra, 3 April 2013, p. 31.            

[44]      Ms Stephanie Martin, Deputy Commissioner, Resource Rent Tax, Australian Tax Office, Proof Committee Hansard, Canberra, 3 April 2013, p. 47.

[45]      Mr Rob Heferen, Executive Director, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, p. 45.

[46]      Proof Committee Hansard, Canberra, 3 April 2013, p. 46.

[47]      MRRT Act, s. 30-25(3).

[48]      Professor Neil Fargher, Proof Committee Hansard, 3 April 2013, p. 14.

[49]      Proof Committee Hansard, Perth, 8 April 2013, p. 8. 

[50]      Mr Rob Heferen, Executive Director, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, p. 32.

[51]      Quote from Professors Neil Fargher and Peter Carey, 'Mining's small change,' The Age, 16 February 2012.

[52]      Professors Neil Fargher and Peter Carey, 'Mining's small change,' The Age, 16 February 2012.

[53]      Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 10.

[54]      Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 13.

[55]      Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 11.

[56]      The MRRT also applies to 'anything produced from a process that results in iron ore being consumed or destroyed without extraction' and 'coal seam gas extracted as a necessary incident of mining coal.' MRRT Act, s. 20-5(1). Oil and gas, meanwhile, are subject to the PRRT.  

[57]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, pp. 1, 4, 8.

[58]      Professor Ross Quiggin, Proof Committee Hansard, Melbourne, 29 April 2013, p. 14.

[59]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 7.

[60]      Mr Mitchell Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, Melbourne, 29 April 2013, p. 33.

[61]      Dr Martin Parkinson, Secretary, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, p. 44.

[62]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p. 1.

[63]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p. 6.

[64]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p. 6.

[65]      Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 14.

[66]      Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 15.

[67]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 8.

[68]      Mr Rob Heferen, Executive Director, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, p. 45.

[69]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 1.

[70]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 8.

[71]      Mr Mitchell Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, Melbourne, 29 April 2013, p. 32.

[72]      Mr Rob Heferen, Executive Director, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, p. 44.

[73]      Australian Government, 2010-11 Budget – Budget Paper No. 2, p. 45.

[74]      Policy Transition Group, New Resource Taxation Arrangements (December 2010), p. 57, New Resource Taxation Arrangements (December 2010), p. 57, http://www.futuretax.gov.au/content/Publications/downloads/New_Resource_Taxation_Arrangements_Report.pdf; and the Hon Wayne Swan MP and the Hon Martin Ferguson AM MP, Government Accepts Resource Tax Recommendations, media release, 24 March 2011, http://minister.ret.gov.au/MediaCentre/MediaReleases/Pages/GovernmentAcceptsResourceTaxRecommendations.aspx

[75]      See Senate Economics Legislation Committee, Minerals Resource Rent Tax Amendment (Protecting Revenue) Bill 2012, p. 15.

[76]      See Senate Economics Legislation Committee, Minerals Resource Rent Tax Amendment (Protecting Revenue) Bill 2012, p. 15 .

[77]      MCA, submission 10, p. 18.

[78]      Proof Committee Hansard, Perth, 8 April 2013, p. 34.

[79]      Dr Martin Parkinson, Secretary, Treasury, Proof Committee Hansard, 3 April 2013, p. 28.

[80]      Quiggin, Proof Committee Hansard, Melbourne, 29 April 2013, pp. 14-15.

[81]      BHP Billiton, submission 13, p. 2.

[82]      Proof Committee Hansard, Melbourne, 29 April 2013, p. 20.

Chapter 3 - The impact of the MRRT on the budget

[1]        Senate Select Committee on Scrutiny of New Taxes, The Mining Tax: A bad tax out of a bad process, 29 June 2011, http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Former_Committees/scrutinynewtaxes/completed_inquiries/2010-13/national_mining_taxes/report/index &, Labor's Mining Tax a fiscal train wreck in the making, Senator Mathias Cormann Press Release, 29 June 2011, http://mathiascormann.com.au/media/2011/2011.06.29%20-%20Mining%20Tax%20Inquiry%20Report.pdf

[2]        Mr Stephen Pearce, Chief Executive Officer, Fortescue Metals Group, Proof Committee Hansard, Perth, 8 April 2013, p. 3.

[3]        Mr Stephen Pearce, Chief Executive Officer, Fortescue Metals Group, Proof Committee Hansard, Perth, 8 April 2013, p. 5.

[4]        Professor Neville Norman, submission 11, p. 1.

[5]        Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p. 3.

[6]        Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 11.

[7]        Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 10.

[8]        Professor Pietro Guj, Proof Committee Hansard, Perth, 8 April 2013, p. 20.

[9]        Dr Martin Parkinson, Secretary, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, pp.51-52

[10]      Dr Martin Parkinson, Secretary, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, pp.28.

[11]      Dr Martin Parkinson, Secretary, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, Canberra, p. 33.

[12]      Dr Martin Parkinson, Secretary, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, Canberra, pp. 29-30.         

[13]       Mr Robert Heferen, Proof Committee Hansard, Canberra, 3 April 2013, p. 30.

[14]      Mr Mitchell Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, Melbourne, 29 April 2013, pp. 36-37.

[15]      Professor Henry Ergas, Proof Committee Hansard, Canberra, 3 April 2013, p. 19.

[16]      Mr Rob Heferen, Executive Director, Treasury, and Dr Martin Parkinson, Secretary, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, p. 34.

[17]      Kai Swoboda, 'Minerals Resource Rent Tax: changes to revenue and expenditure estimates,' in Parliamentary Library, Research Paper No. 9, 2011-12, 'Budget Review 2012-13,' 11 May 2012, p. 160, available at http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview201213

[18]      Kai Swoboda, 'Minerals Resource Rent Tax: changes to revenue and expenditure estimates,' in Parliamentary Library, Research Paper No. 9, 2011-12, 'Budget Review 2012-13,' 11 May 2012, p. 160.

[19]      Adrian Rollins and David Crowe, 'Swan unruffled by "variable" mining tax', Australian Financial Review, 13 February 2012.

[20]      Mr Stephen Pearce, Chief Executive Officer, Fortescue Metals Group, Proof Committee Hansard, Perth, 8 April 2013, p. 13.

[21]      Professor Jonathan Pincus and Professor Henry Ergas, Submission 2, p. 4.

[22]      Professor Jonathan Pincus, Proof Committee Hansard, Canberra, 3 April 2013, p. 17.

[23]      Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 12.

[24]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 7.

[25]      Mr Stephen Pearce, FMG, Proof Committee Hansard, p. 2, Perth, 8 April 2013

Chapter 4 - The negotiation and development of the MRRT

[1]        Mr Simon Bennison, Chief Executive Officer, AMEC, Proof Committee Hansard, Perth, 8 April 2013, p. 13.

[2]        Mr Simon Bennison, Chief Executive Officer, AMEC, Proof Committee Hansard, Perth, 8 April 2013, p. 1.

[3]        Mr Stephen Pearce, Chief Financial Officer, FMG, Proof Committee Hansard, Perth, 8 April 2013, p. 3.

[4]        Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p. 1.

[5]        See, for instance, Select Committee on the Scrutiny of New Taxes, The Mining Tax: A bad tax out of a flawed process, June 2011, pp. 36-39.

[6]        Senate Select Committee on the Scrutiny of New Taxes, The Mining Tax: A bad tax out of a flawed process, June 2011, p. 36.

[7]        Mr Rob Heferen, Executive Director, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, p. 44.

[8]        Mr Brian Purdy, Senior Manager Finance, BHP Billiton Iron Ore, BHP Billiton, Proof Committee Hansard, Melbourne, 29 April 2013, pp. 30-31.

[9]        Mr Rob Heferen, Executive Director, Treasury, Proof Committee Hansard, Canberra, 3 April 2013, p. 32.

[10]      Australia's Future Tax System, Report to the Treasurer, part 2: detailed analysis, vol. 1, December 2009, p. 231

[11]      Queensland Government, Submission 3, p. 1.

[12]      Mr Tim Marney, Under Treasurer, Department of Treasury, Western Australia, Proof Committee Hansard, Perth, 8 April 2013, p. 36.

[13]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p. 2.

[14]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 1.

Chapter 5 - The logic of a Commonwealth-administered resource rent tax

[1]        Professor John Quiggin, Proof Committee Hansard, Melbourne, 29 April 2013, p. 15.

[2]        Mr Mitchell Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, Melbourne, 29 April 2013, p. 18.

[3]        Minerals Council of Australia, Answer to Question on Notice received 03/03/2013

[4]        Mr Mitchell Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, Melbourne, 29 April 2013, p. 18; MCA. submission 10, pp. 10-14.

[5]        Queensland Government, submission 3, p. 1. 

[6]        Queensland Government, submission 3, p. 2.  

[7]        Mr Tim Marney, Under Treasurer, Department of Treasury, Western Australia, Proof Committee Hansard, Perth, 8 April 2013, p. 35. 

[8]        Mr Tim Marney, Under Treasurer, Department of Treasury, Western Australia, Proof Committee Hansard, Perth, 8 April 2013, p. 36. 

[9]        Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 8.

[10]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p.2, 8.

[11]      The Hon Kevin Rudd MP, Stronger, Fairer, Simpler: A Tax Plan for Our Future, joint media release, 2 May 2010, http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2010/028.htm&pageID=003&min=wms&Year=&DocType.

[12]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 2.

[13]      Mr Mitchell Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, Melbourne, 29 April 2013, p 24.

[14]      Professor Pietro Guj, Proof Committee Hansard, Perth, 8 April 2013, p. 16.  

[15]      Professor Pietro Guj, Proof Committee Hansard, Perth, 8 April 2013, p. 17.  

[16]      Mr Simon Bennison, Chief Executive Officer, AMEC, Proof Committee Hansard, Perth, 8 April 2013, p. 9.

[17]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p.1-2.

[18]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p. 3.

[19]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p. 1.

[20]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p. 7.

[21]      Professor Pietro Guj, Proof Committee Hansard, Perth, 8 April 2013, p. 16.  

[22]      Queensland Government, submission 3, p. 1.

[23]      Mr Tim Marney, Under Treasurer, Department of Treasury, Western Australia, Proof Committee Hansard, Perth, 8 April 2013, pp. 35-36.

[24]      Mr Tim Marney, Under Treasurer, Department of Treasury, Western Australia, Proof Committee Hansard, Perth, 8 April 2013, pp. 35-36.

[25]      Queensland Government, submission 3, p. 1; Mr Tim Marney, Under Treasurer, Department of Treasury, Western Australia, Proof Committee Hansard, Perth, 8 April 2013, p. 35.

[26]      Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 16.

[27]      Professor Jonathan Pincus, Proof Committee Hansard, Canberra, 3 April 2013, p. 17.

[28]      Professor John Rolfe, submission 12, pp. 2-3.

[29]      Professor John Rolfe submission 12, pp. 2-3.

[30]      Mr Philip Kirchlechner, submission 16, p. 1.

[31]      Mr Philip Kirchlechner, submission 16, p. 5

[32]      Mr Mitchell Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, Melbourne, 29 April 2013, p. 19.

[33]      Mr Tim Marney, Under Treasurer, Department of Treasury, Western Australia, Proof Committee Hansard, Perth, 8 April 2013, pp. 37-38.

[34]      Mr Tim Marney, Under Treasurer, Department of Treasury, Western Australia, Proof Committee Hansard, Perth, 8 April 2013, p. 38.

[35]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 1, 5.

[36]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, p. 3.

[37]      Isaac Regional Council, Submission 6, p. 1.

[38]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p. 8. 

[39]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, p. 8.

[40]      Professor Jonathan Pincus, Proof Committee Hansard, Canberra, 3 April 2013, p. 17.

[41]      Dr Richard Denniss, Executive Director, The Australia Institute, Australian National University, Proof Committee Hansard, Canberra, 3 April 2013, pp. 1, 4.

[42]      Fortescue Metals Group, submission 4, p. 2.

[43]      Mr Mitchell Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, Melbourne, 29 April 2013, p. 21.

[44]      Professor Ross Garnaut AO, Proof Committee Hansard, Melbourne, 29 April 2013, PCHM, p. 4.

[45]      Mr David Utting, Chief Executive Officer, Yilgarn Iron Producers Association, Proof Committee Hansard, Perth, 8 April 2013, p33.

Chapter 6 - The impact of the MRRT

[1]        Professor Henry Ergas, Proof Committee Hansard, Canberra, 3 April 2013, p. 19.

[2]        Professor Pietro Guj, Proof Committee Hansard, Perth, 8 April 2013, p. 15.

[3]        Mr Stephen Pearce, Chief Executive Officer, Fortescue Metals Group, Proof Committee Hansard, Perth, 8 April 2013, p. 3.

[4]        Mr Simon Bennison, Chief Executive Officer, AMEC, Proof Committee Hansard, Perth, 8 April 2013, p. 1-2.

[5]        Mr Simon Bennison, Chief Executive Officer, AMEC, Proof Committee Hansard, Perth, 8 April 2013, p. 2.

[6]        Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 16.

[7]        Professor Henry Ergas, Proof Committee Hansard, Canberra, 3 April 2013, p. 26.

[8]        Mr Craig Ferrier, Executive General Manager, Golden West Resources, Proof Committee Hansard, Perth, 8 April 2013, p. 24.

[9]        Mr Stephen Pearce, Chief Executive Officer, Fortescue Metals Group, Proof Committee Hansard, Perth, 8 April 2013, p. 2.

[10]      Mr Stephen Pearce, Chief Executive Officer, Fortescue Metals Group, Proof Committee Hansard, Perth, 8 April 2013, p. 5.

[11]      FMG, submission 4, p. 2.

[12]      Mr Simon Bennison, Chief Executive Officer, AMEC, Proof Committee Hansard, Perth, 8 April 2013, p. 2.

[13]      Mr Simon Bennison, Chief Executive Officer, AMEC, Proof Committee Hansard, Perth, 8 April 2013, p. 6.

[14]      Professor Pietro Guj, Proof Committee Hansard, Perth, 8 April 2013, p. 21.

[15]      Mr Mitchell Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, Melbourne, 29 April 2013, p. 24.

[16]      Proof Committee Hansard, Melbourne, 29 April 2013, p. 24.

[17]      Mr Simon Bennison, Chief Executive Officer, AMEC, Proof Committee Hansard, Perth, 8 April 2013, p. 12.

[18]      Mr Craig Ferrier, Executive General Manager, Golden West Resources, Proof Committee Hansard, Perth, 8 April 2013, p. 24.

[19]      Professor Neil Fargher, Proof Committee Hansard, Canberra, 3 April 2013, p. 15.

[20]      Mr Craig Ferrier, Executive General Manager, Golden West Resources, Proof Committee Hansard, Perth, 8 April 2013, pp. 24-25.

[21]      Queensland Government, submission 3, p. 2.

[22]      Mr Simon Bennison, Chief Executive Officer, AMEC, Proof Committee Hansard, Perth, 8 April 2013, p. 2.

[23]      Mr Simon Bennison, Chief Executive Officer, AMEC, Proof Committee Hansard, Perth, 8 April 2013, p. 7.

[24]      Mr Mitchell Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, Melbourne, 29 April 2013, p. 26.

[25]      Isaac Regional Council, Submission 6, p. 1.

[26]      Isaac Regional Council, Submission 6, p. 2.

[27]      Saving our Sustainability, Submission 15, p. 3.

Dissenting Report by Senator Bishop

[1]        Committee Hansard, 14 February 2013, p. 44.

[2]        The Hon Julia Gillard MP, the Hon Wayne Swan MP and the Hon Martin Ferguson AM MP, 'Breakthrough Agreement with Industry on Improvements to Resource Taxation,' joint media release, 2 July 2010, http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2010/055.htm&pageID=003&min=wms&Year=&DocType=.

[3]        Minerals Council of Australia, Submission 10, p, 4.

[4]        Response to question on notice, Professor Neil Fargher, 2 May 2013

[5]        Minerals Resource Rent Tax Bill 2011 and related bills, Revised Explanatory Memorandum, pp. 3-4.

[6]        Minerals Council of Australia, Submission 10, p, 5.

[7]        Mr Rob Heferen, Executive Director , Revenue Group, Tax policy during a resources boom, Speech to AMEC Convention 2012, 4 September 2012. http://www.treasury.gov.au/PublicationsAndMedia/Speeches/2012/Tax-policy-during-a-resources-boom

[8]        Proof Committee Hansard, 8 April 2013, p. 40.

[9]        Professor Ross Garnaut, 29 April 2013, Proof Committee Hansard, p. 9.

[10]      Swan defends MRRT as long-term gainer, The Sydney Morning Herald, 13 February 2013, http://news.smh.com.au/breaking-news-national/swan-defends-mrrt-as-longterm-gainer-20130213-2ed7i.html

[11]      Abbot cashes in on mining tax, The Australian, 26 October 2012, http://www.theaustralian.com.au/national-affairs/in-depth/abbott-cashes-in-on-mining-tax/story-fnb56a2t-1226503464599   

[12]      Minerals Council of Australia, Submission 10, p, 5.

[13]      Dr Martin Parkinson, Committee Hansard, 14 February 2013, p. 51.

[14]      Senate Economics Legislation Committee, Mineral Resource Rent Tax Bill 2011 [Provisions] and related bills, p. 33.

[15]      The Hon Wayne Swan MP, Treasurer, Release of the GST Distribution Review Final Report, 30 Nov 2012, http://ministers.treasury.gov.au/wmsDisplayDocs.aspx?doc=pressreleases/2012/119.htm&pageID=003&min=wms&Year=2012&DocType=0

[16]      Professor Ross Garnaut, 29 April 2013, Proof Committee Hansard, p. 8.

[17]      Mr Craig Ferrier, Golden West Resources, 8 April 2013, Proof Committee Hansard, p. 27.

[18]      Professor Pietro Guj, 8 April 2013, Proof Committee Hansard, p. 21.

[19]      Professor Ross Garnaut, 29 April 2013, Proof Committee Hansard, p. 4.

[20]      Rayner, V. and Bishop, J., Industry Dimensions of the Resource Boom: An input-output analysis, Reserve Bank of Australia, Feb 2013. http://www.rba.gov.au/publications/rdp/2013/pdf/rdp2013-02.pdf (accessed 3 May 2013)

[21]      Remarks made by Professor Quentin Grafton, Executive Director/Chief Economist of the Bureau of Resources and Energy Economics, 18 September 2012, p. 9. http://www.bree.gov.au/documents/presentations/ANCRE-SEP2012_ProfGrafton_speech-text.pdf (accessed 3 May 2013)

[22]      Mr Christian Bennett, BHP Billiton, 29 April 2013, Proof Committee Hansard, p. 26.

[23]      Ms Cassandra McCarthy, Xstrata, 29 April 2013, Proof Committee Hansard, p. 29.

[24]      Mr Mark O'Neill, Rio Tinto, 29 April 2013, Proof Committee Hansard, p. 27.

Dissenting Report by Senator Cameron

[1]        Professor Neil Fargher, Responses to questions on notice, received 2 May 2013

[2]        Bulga Milbrodale Progress Association Inc. v  Minister for Planning and Environment and Warkworth Mining Limited [2013] NSWLEC 1948 (15 April 2013) at paragraph 459

[3]        Australia’s Future Tax System, Report to the Treasurer, Detailed analysis, page 228.

[4]           GST Review Panel, Interim Report, June 2012 http://www.gstdistributionreview.gov.au/content/Content.aspx?doc=reports/interimjune2012/07Chapter4.htm viewed 5th May 2013.

Dissenting report from the Australian Greens - Executive summary

[1]        That inquiry was by this committee’s sister committee, the Senate Economics Legislation Committee. Its report was issued in March 2012.

[2]        Professor Ross Garnaut, Proof Committee Hansard, 29 April 2013, p 7.

[3]        Dr Richard Denniss, Executive Director, Australia Institute, Proof Committee Hansard, 3 April 2013, p 1.

[4]        Professor John Quiggin, Proof Committee Hansard, 29 April 2013, p 14.

[5]        Reserve Bank of Australia, 'The level and distribution of recent mining sector revenue', Reserve Bank Bulletin, January 2009, p 11.

[6]        Reserve Bank of Australia, Statement on Monetary Policy, November 2011, p 43. A study commissioned by the Greens estimated the proportion at 83 per cent; Naomi Edwards, 'Foreign ownership of Australian mining profits', 2011. An Australia Institute study estimated the proportion as around 75 per cent; David Richardson and Richard Denniss, Mining the Truth, Australia Institute, September 2011, p 23.

[7]        Many of these workers apparently do not value their jobs in mining that highly. The mining industry loses around a quarter of its workforce each year, 'suggesting that even the high wages paid are not sufficient to compensate many workers for the risks, social isolation and other negative features often associated with the work'; David Richardson and Richard Denniss, Mining the Truth, Australia Institute, September 2011, p 23.

[8]        Ken Henry, 'Revisiting the policy requirements of the terms-of-trade boom', Economic Roundup, Issue 2, 2008, p 45; Glenn Stevens, 'Economic conditions and prospects', Reserve Bank Bulletin, September quarter 2011, p 87.

[9]        David Richardson and Richard Denniss, Mining the Truth, Australia Institute, September 2011, p 56.

[10]      The term 'Dutch disease' was coined by The Economist, 26 November 1977. The economic literature on this matter has featured key contributions by two eminent Australian economists: Max Corden and Bob Gregory. In Australia, the 'Dutch disease' is sometimes referred to as the 'Gregory effect'. Key articles include Max Corden and Peter Neary, 'Booming Sector and De‑industrialisation in a Small Open Economy', The Economic Journal, December 1982, and Bob Gregory, 'Some Implications of the Growth of the Mineral Sector', The Australian Journal of Agricultural Economics, 1976.

[11]      On many occasions when the Reserve Bank increased interest rates between 2006 and 2008 their published statements cited commodity prices as a factor behind the rise; David Richardson and Richard Denniss, Mining the Truth, Australia Institute, September 2011, p 48. The higher interest rates also added to pressures on the dollar to appreciate.

[12]      Professor John Quiggin, Proof Committee Hansard, 29 April 2013, p 17.

[13]      Dr Richard Denniss, Australia Institute Proof Committee Hansard, 3 April 2013, p 5.

[14]      David Richardson and Richard Denniss, Mining the Truth, Australia Institute, September 2011, p 27.

[15]      Dr Martin Parkinson, Secretary, Department of the Treasury, Economics Estimates Hansard, 14 February, pp 59-61.

[16]      As an example, the economic impact statement for Waratah Coal’s $8 billion ‘Galilee Coal’ or ‘China First’ coal mine, estimated that the mine will lead to the loss of over 2,000 jobs in manufacturing. A recent court case found that ‘employment generated from the extension of the Warkworth mine would involve currently employed skilled workers transferring from other industries’, rejecting modelling presented by mining interests; Rio Tinto, Response to questions on notice 2, p 1.

[17]      Mr Mitch Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, 29 April 2013, p 17.

[18]      Minerals Council of Australia, Submission 10, p 6.

[19]      Professor John Quiggin, Proof Committee Hansard, 29 April 2013, p 14.

[20]      Professor John Quiggin, Proof Committee Hansard, 3 April 2013, p 12.

[21]      David Richardson and Richard Denniss, Mining the Truth, Australia Institute, September 2011, pp 54-55.

[22]      Mr Mitch Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, 29 April 2013, p 18.

[23]      Employment in mining was around 100,000 in 2003-04 and is 260,000 now; Australian Bureau of Statistics, Labour Force, Australia, Detailed Quarterly, February 2013; http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6291.0.55.003Feb%202013?OpenDocument.

[24]      Mr Mitch Hooke, Chief Executive Officer, Minerals Council of Australia, Proof Committee Hansard, 29 April 2013, p 18.

[25]      Dr David Gruen, Executive Director (Macroeconomic Group), Department of the Treasury, Economics Estimates Hansard, 16 February 2012, p 17.

[26]      The House of Representatives Standing Committee on Regional Australia recently held an inquiry into the use of ‘fly-in, fly-out’ workforce practices, which described ‘the damage that the practice is doing to the prosperity of some of those in regional communities’; Cancer of the Bush or Salvation for Our Cities?, February 2013.

[27]      Minerals Council of Australia, Submission 10, pp 7, 13 and 14.

[28]      Dr Ken Henry, then secretary of the Treasury, Senate Economics Committee Estimates Hansard, 27 May 2010, p 17.

[29]      See majority report, paragraph 2.131, p 39.

[30]      This not true of all large mining companies. Fortescue Metals Group did not pay any company tax until December 2011; Mr Marcus Hughes, Head of Tax, Fortescue Metals Group, House Economics Committee Hansard, 9 November 2011, p 6.

[31]      Rio Tinto, Submission 8, p 1; BHP Billiton, Submission 13, p 3; Mr Mark O’Neill, Chief Adviser, Government Relations, Rio Tinto, Proof Committee Hansard, 29 April 2013, p 36.

[32]      The IPA has had close links with the Liberal Party since both were established in the 1940s. The mining industry is believed to be a significant funder of its operations; Clive Hamilton, ‘The shadowy world of IPA finances’; ABC The Drum, 24 February 2012. Asked to set the record clear on this, the IPA refused to do so; Senate Economics Committee Hansard, 21 February 2012, p 16.

[33]      Minerals Council of Australia, Submission 10, p 12.

[34]      Dr Ken Henry, then secretary of Treasury, Economics Estimates Hansard, 27 May 2010, pp 13‑14. 

[35]      Professor John Quiggin, Proof Committee Hansard, 29 April 2013, p 16.

[36]      Dr Martin Parkinson, 'Introductory remarks to Australia-Israel Chamber of Commerce', Sydney, 7 March 2012, p 9.

[37]      Dr Ken Henry, Senate Select Committee on New Taxes Hansard, 22 November 2010, p 39.

[38]      Peter Greagg, Parham and Stojanovsk, 'Disparities in average rates of company tax across industries', Economic Roundup, Winter 2010; and John Clark, Peter Greagg and Amy Leaver, 'Average rates of company tax across industries revisited', Economic Roundup, 2011, Issue 2.

[39]      Mr David Flanagan, Managing Director, Atlas Iron Ltd, Senate Economics Committee Hansard, 22 February 2012, p 8.

[40]      Mr Rob Heferen, Executive Director, Revenue Group, Department of the Treasury, Senate Economics Committee Hansard, 21 February 2012, p 71.

[41]      Henry Ergas, Mark Harrison and Professor Jonathan Pincus, ‘Some economics of mining taxation’, Economic Papers, December 2010, p 372.

[42]      Mr Tim Marney, Under Treasurer, Western Australia Department of Treasury, Proof Committee Hansard, 8 April 2013, p 35.

[43]      Professor John Quiggin, Proof Committee Hansard, 29 April 2013, p 15.

[44]      Rio Tinto includes in its Taxes Paid report, attached to its Submission 8, under the heading ‘payroll tax’ the income tax that is paid by its employees as though it were paid by the company; Proof Committee Hansard, 29 April 2013, pp 34-35.

[45]      Minerals Council, Submission 10, p 15. This is presumably calculated as (1-0.30)*0.225 + 0.30 = 0.458, where the company tax is 30% and the MRRT rate 22.5%.

[46]      Mr Mark O’Neill, Rio Tinto, Proof Committee Hansard, 29 April 2013, p 32. The original comment was reported in the Sydney Morning Herald, 24 May 2010.

[47]      Stephen Bartholomeusz, ‘Rio Tinto’s careful Mongolian courtship’, Business Spectator, 6 February 2013.

[48]      Professor Ross Garnaut, Proof Committee Hansard, 29 April 2013, p 5.

[49]      Professor John Quiggin, Proof Committee Hansard, 29 April 2013, p 15.

[50]      http://www.dolbear.com/news-resources/documents.

[51]      The Economist, 11 February 2012, p 45.

[52]      Australian Bureau of Statistics, Private New Capital Expenditure and Expected Expenditure (5625.0), December quarter 2012, p 9.

[53]      Bureau of Resources and Energy Economics, Resources and Energy Major Projects, October 2012.

[54]      Mr Christian Bennett, Vice President, Government Relations, BHP Billiton, Proof Committee Hansard, 29 April 2013, p 26.

[55]      Dr Richard Denniss, Executive Director, Australia Institute, Proof Committee Hansard, 3 April 2013, p 5.

[56]      Mr Mitch Hooke, CEO, Minerals Council of Australia, Proof Committee Hansard, 29 April 2013, p 19.

[57]      Marius Kloppers, ‘Presentation to the Brisbane Mining Club’, 17 October 2012, p 2.

[58]      Professor Ross Garnaut, Proof Committee Hansard, 29 April 2013, p 9.

[59]      Dr Martin Parkinson, Secretary, Department of the Treasury, Economics Estimates Hansard, 14 February2013, p 61.

[60]      37 per cent strongly agreed, whereas only 9 per cent strongly disagreed. http://www.ecosoc.org.au/files/File/CC/Survey%20summary%205%20categories.pdf.

[61]      Professor Garnaut was chosen as the distinguished fellow for 2009 and Professor Quiggin for 2011. 

[62]      Professor Ross Garnaut, Proof Committee Hansard, 29 April 2013, p 4.

[63]      Professor Ross Garnaut, Proof Committee Hansard, 29 April 2013, p 4.

[64]      Professor John Quiggin, Proof Committee Hansard, 29 April 2013, p 12.

[65]      Dr Richard Denniss, Executive Director, Australia Institute, Proof Committee Hansard, 3 April 2013, p 1.

[66]      See, for example, Senator Bob Brown, 'A tax on resources profits would benefit all of us', Sydney Morning Herald, 6 April 2010. 

[67]      Professor John Quiggin, Senate Economics Committee Hansard, 22 February 2012, p 14.

[68]      Fortescue Metals Group, Submission 26 to 2012 inquiry by Senate Economics Committee, p 5.

[69]      Association of Mining and Exploration Companies, Submission 5, pp 2-3.

[70]      Mr Rob Heferen, Department of the Treasury, Proof Committee Hansard, 3 April 2013, p 43.

[71]      Professor John Quiggin, Proof Committee Hansard, 29 April 2013, pp 14-15.

[72]      Mr Brian Purdy, Senior Manager, Finance, BHP Billiton, Proof Committee Hansard, 29 April 2013, pp 29-30.

[73]      Association of Mining and Exploration Companies, Submission 5, p 1.

[74]      Mr Brian Purdy, BHP Billiton, Proof Committee Hansard, 29 April 2013, p 30.

[75]      BHP Billiton, Responses to questions on notice 6, p 1.

[76]      Mr Brian Purdy, BHP Billiton, Proof Committee Hansard, 29 April 2013, p 30.

[77]      See the discussion in the majority report, paragraphs 3.23-3.27, pp 45-46.

[78]      Professor Neil Fargher, Proof Committee Hansard, 3 April 2013, p 11.

[79]      Dr Richard Denniss, Executive Director, Australia Institute, Proof Committee Hansard, 3 April 2013, p 2.

[80]      Isaac Regional Council, Submission 6, p 2.

[81]      Mr Gary Gray, cited approvingly by Minerals Council, Submission 10, p 2, and by Mr Mitch Hooke, Minerals Council of Australia, Proof Committee Hansard, 29 April 2013, p 37.

[82]      Dr Richard Denniss, Australia Institute, Proof Committee Hansard, 3 April 2013, p 5.

[83]      Professor John Quiggin, Proof Committee Hansard, 29 April 2013, p 14.

[84]      This was not made clear at the time, leading to surprise about how little the apparent drop in revenue was between the RSPT and MRRT in the first two years. Interviewed on Lateline on 14 July 2010, Treasurer Swan conceded that higher commodity prices had increased the revenue over the first two years by $6 billion.

[85]      Naomi Edwards, 'An analysis of the impact of switching from the RSPT to the MRRT', 28 March 2011.

[86]      John Kehoe, 'Mining tax hole tops $100bn', Australian Financial Review, 24 February 2011.

[87]      Mr Matthew Maloney, Manager, Costings and Quantitative Tax Analysis Unit, Department of the Treasury, Proof Committee Hansard, 3 April 2013, p 42.

[88]      Dr Martin Parkinson, Treasury, Proof Committee Hansard, 3April 2013, pp 28, 40.

[89]      Memo from Commissioner of Taxation to Treasurer, 8 February 2013.

[90]      Proof Committee Hansard, 29 April 2013, p 21.

[91]      Mr Ross Lyons, Rio Tinto, Proof Committee Hansard, 29 April 2013, p 22.

[92]      Mr Brian Purdy, BHP Billiton Iron Ore, Proof Committee Hansard, 29 April 2013, p 22.

[93]      Mr Dominic Smith, Tax Manager, Xstrata Coal, Proof Committee Hansard, 29 April 2013, p 23.

[94]      Mr Stephen Pearce, Chief Financial Officer, Fortescue Metals Group, Proof Committee Hansard, 8 April 2013, pp 2 and 4.

[95]      The Bureau of Resource and Energy Economics, for example, expects the iron ore price to decline from around US $150 a tonne in the March quarter of 2013 to around US$90 by 2018; BREE, Resources and Energy Quarterly, March 2013, p 58.

[96]      Professor Ross Garnaut, Proof Committee Hansard, 29 April 2013, p 7.

[97]      Professors Henry Ergas and Jonathan Pincus, Submission 2. This point was also made in an article Professors Ergas and Pincus wrote with Mark Harrison, 'Some economics of mining taxation', Economic Papers, December 2010.

[98]      Professor John Quiggin, Proof Committee Hansard, 29 April 2013, p 13.

[99]      See majority report, paragraph 3.48, p 50.

[100]    See majority report, paragraph 3.47, p 48.

[101]    Australia's Future Tax System, December 2009, recommendation 45, p 231.

[102]    For example, Dr Alan Moran, Institute of Public Affairs, Senate Economics Committee Hansard, 21 February 2012, p 13.

[103]    OECD, Economic Surveys: Australia, November 2010.

[104]    Professor Ross Garnaut, Proof Committee Hansard, 29 April 2013, p 8.

[105]    Parliamentary Budget Office, 24 April 2013.

[106]    The Parliamentary Budget Office estimates that iron ore will contribute about three-quarters of the revenue in 2012-13; PBO, 24 April 2013.

[107]    Mr Mitch Hooke, CEO. Minerals Council of Australia, Proof Committee Hansard. 29 April 2013, p 32.

[108]    OECD, Economic Surveys: Australia, November 2010.

[109]    Professor Ross Garnaut, Proof Committee Hansard, 3 April 2013, p 7.

[110]    Professor John Quiggin, Proof Committee Hansard, 3 April 2013, p 14.

[111]    Dr Richard Denniss, Executive Director, Australia Institute, Proof Committee Hansard, 3 April 2013, p 1.

[112]    Professor Jonathan Pincus, Proof Committee Hansard, 3 April 2013, p 24.

[113]    Dr Martin Parkinson, Secretary, Department of the Treasury, Proof Committee Hansard, 3April 2013, p 44. This is consistent with Treasury’s response to question on notice no. 667 from supplementary budget estimates, October 2011.

[114]    The PBO estimates that an MRRT on gold would raise $0.9 billion in 2013-14 compared to $0.4 billion from coal; and $0.8 billion in 2014-15 compared to $0.6 billion from coal; Parliamentary Budget Office, 24 April 2013.

[115]    Dr Richard Denniss, Executive Director, Australia Institute, Proof Committee Hansard, 3 April 2013, p 4.

[116]    Parliamentary Budget Office, 24 April 2013.

[117]    See discussion in Proof Committee Hansard, 8 April 2013, pp 42-44.

[118]    See for example Mr Tim Marney, Under Treasurer, Western Australia Department of Treasury, Proof Committee Hansard, 8 April 2013, pp 35-36.

[119]    The data are taken from a table in Senate Select Committee on New Taxes, The Mining Tax: a Bad Tax Out of a Flawed Process, June 2011, p 128.

[120]    A study commissioned for the Henry Tax Review suggested that royalties involved marginal welfare losses of around 70 per cent of the revenue raised, the highest of the 12 types of taxes examined whereas resource rent taxes involved no welfare loss; Australia’s Future Tax System, December 2009, Part 1, p 13.

[121]    An additional $100 of royalties paid decreases a company’s MRRT by $100, not by the $22.50 implied by the Minerals Council’s description of royalties as ‘a cost of doing business and therefore, like any business cost, are deductible from tax-subject revenues’; Mr Mitch Hooke, Minerals Council of Australia, Proof Committee Hansard, 29 April 2013, p 20 and repeated on p 21.

[122]    Australia's Future Tax System, December 2009, p 240.

[123]    The Resources Super Profits Tax, 2010, p 31.

[124]    Mr Brian Purdy, Senior Manager, Finance, BHP Billiton Iron Ore, Proof Committee Hansard, 29 April 2013, p 31. In their written response BHP Billiton says it was their ‘clear understanding’ that the agreement covered future royalty increases; Responses to questions on notice 6, p 2.

[125]    Rio Tinto, Response to questions on notice 3, p 3.

[126]    Dr Ken Henry, Secretary, Department of the Treasury, Senate Committee on New Taxes Hansard, 22 November 2010, pp 9 and 12.

[127]    OECD, Economic Surveys: Australia, November 2010.

[128]    Senate Economics Legislation Committee, Minerals Resource Rent Tax Bill 2011 [Provisions] and related bills, March 2012, p 33.

[129]    Professor John Quiggin, Submission 1 to Senate Economics Committee inquiry into the MRRT Amendment (Protecting Revenue) Bill 2012, p 1.

[130]    Professor John Quiggin, Submission 1 to Senate Economics Committee inquiry into the MRRT Amendment (Protecting Revenue) Bill 2012, p 1.

[131]    Professor John Quiggin, Submission 1 to Senate Economics Committee inquiry into the MRRT Amendment (Protecting Revenue) Bill 2012, p 1. According to Treasury, Western Australia was a ‘claimant state’ in 33 out of 48 years and a beneficiary of the current revenue-sharing arrangements for 18 out of 30 years while Queensland has benefited from the current arrangements in 26 out of 30 years; response to question on notice SBT 311, Economics supplementary budget estimates, October 2011.

[132]    Professor Ross Garnaut, Proof Committee Hansard, 29 April 2013, p 1.

[133]    Professor Jonathan Pincus, Proof Committee Hansard, 3 April 2013, p 20.

[134]    Professor Jonathan Pincus, Proof Committee Hansard, 3 April 2013, p 17.

[135]    Australian Government, GST Distribution Review, Terms of Reference, www.gstdistributionreview.gov.au/content/Content.aspx?doc=tor.htm. See the discussion in the majority report and also in the Australian Financial Review, 9 January 2012.

[136]    GST Distribution Review – Final Report, page 123.

[137]    GST Distribution Review – Final Report, page 130.

[138]    Parliamentary Budget Office, 24 April 2013.

[139]    Australia's Future Tax System, December 2009, p 234.

[140]    Professor George Fane, Senate Select Committee on New Taxes Hansard, 30 March 2011, p 26.

[141]    Professor George Fane, Senate Select Committee on New Taxes Hansard, 30 March 2011, p 26.

[142]    Professor Ross Garnaut, Proof Committee Hansard, 29 April 2013, p 1.

[143]    Dr Richard Denniss, Executive Director, Australia Institute, Proof Committee Hansard, 3 April 2013, p 6.

[144]    Professor Neil Fargher, Proof Committee Hansard, 3 April 2013, p 14.

[145]    Professor John Quiggin, Proof Committee Hansard, 29 April 2013, p 15.

[146]    Mr Rob Heferen, Department of the Treasury, Proof Committee Hansard, 3 April 2013, p 45.

[147]    Parliamentary Budget Office. 24 April 2013.

[148]    Treasury, Tax Expenditures Statement 2012, p 45.

[149]    This is the view of the Parliamentary Budget Office and of Professor Neil Fargher, Proof Committee Hansard, 3 April 2013, p 14.

[150]    Mr Rob Heferen, Department of the Treasury, Proof Committee Hansard, 3 April 2013, p 30.

[151]    Mr Marcus Hughes, Group Manager, taxation, Fortescue Metals Group, Senate Economics Committee Hansard, 21 February 2012, p 40.

[152]    Professor Neil Fargher, Answers to questions on notice 1, p 1.

[153]    The majority report takes this view; ‘The objective of the deliberate MRRT design feature providing for market value based depreciation arrangements is well understood. It helps ensure existing projects are not subject to retrospective taxation’; paragraph 2.4, p. 13.

[154]    BDO Accountants, Submission 3 to Senate Economics Committee inquiry into MRRT Bill 2011, pp 4-5, make this point. Fortescue Metals Group, Submission 26 to Senate Economics Committee inquiry into MRRT Bill 2011, make a similar argument.

[155]    Mr Julian Tapp, Director, Strategy, Fortescue Metals Group, Senate Economics Committee Hansard, 21 February 2012, p 43. A similar point was made by Mr John Murray, Director, BDO Accountants, Senate Economics Committee Hansard, 21 February 2012. 

[156]    Professor Jonathan Pincus, Proof Committee Hansard, 3 April 2013, pp 17-18.

[157]    Dr Richard Denniss, Executive Director, Australia Institute, Proof Committee Hansard, 3 April 2013, p 6.

[158]    Professor Ross Garnaut, Proof Committee Hansard, 29 April 2013, pp 1, 3 and 6.

[159]    The comment comes from two professors of accounting, Professor Peter Carey and Professor Neil Fargher, The Age, 16 February 2012.

[160]    Professor Neil Fargher, Proof Committee Hansard, 3 April 2013, p 14.

[161]    Professor Neil Fargher, Answers to questions on notice 1, p 1.

[162]    Mr Rob Heferen, Executive Director (Revenue Group), Department of the Treasury, Proof Committee Hansard, 3 April 2013, p 45.

[163]    Construction, Forestry, Mining & Energy Union, Submission 16 to Senate Economics Committee inquiry into MRRT Bill 2011, p 12.

[164]    Mr Stephen Pearce, Chief Financial Officer, Fortescue Metals Group, Proof Committee Hansard, 8 April 2013, p 5.

[165]    Professor Ross Garnaut, Proof Committee Hansard, 29 April 2013, pp 3- 6.

[166]    Senator Mark Bishop and Professor Ross Garnaut, Proof Committee Hansard, 29 April 2013, p 6.

[167]    Professor Pietro Guj raised a possible anomaly that could arise; ‘if an explorer finds a mineral resource, spends $30 million in proving it up, it will carry that project in the books at $30 million as a tangible asset. However, if big brother, BHP Billiton, comes along and buys that asset from the explorer for, say, $150 million, then the BHP books would show $30 million as a tangible asset, being the project money that was actually spent in drilling, digging and whatever, plus the difference between the price paid and the tangible asset of $120 million as an intangible asset called 'mining rights'. So, depending on how you get to own the project, you may or may not have in your balance sheet the value of the resources’; Proof Committee Hansard, 8 April, p 18. Professor Neil Fargher, however, explained that this problem could be avoided by using the methodology of division 43 of the Income Tax Assessment Act 1997, under which ‘no matter how many times a building has been sold the successive owners can only claim a percentage of the historical construction cost.’; Response to questions on notice 1, p 2.

[168]    Mr Stephen Pearce, Chief Financial Officer, Fortescue Metals Group, Proof Committee Hansard, 8 April 2013, pp 3, 5 and 8.

[169]    Mr David Richardson, Chief Financial Officer, Gindalbie Metals, Senate Economics Committee Hansard, 21 February 2012, p 54.

[170]    Professor Neil Fargher, Proof Committee Hansard, 3 April 2013, p. 14.

[171]    Construction, Forestry, Mining & Energy Union, Submission 16 to Senate Economics Committee inquiry into MRRT Bill 2011, p 9.

[172]    Uniting Justice Australia, Submission 28 to Senate Economics Committee inquiry into MRRT Bill 2011, p 5.

[173]    Professor Henry Ergas, Senate Economics Committee Hansard, 21 February 2012, p 8.

[174]    Mid-Year Economic and Fiscal Outlook, 2011-12, p 167.

[175]    Mr Mitch Hooke, Minerals Council of Australia, Proof Committee Hansard, 29 April 2013, p 24.

[176]    See majority report, paragraph 2.131, p 39.

[177]    Professor John Quiggin, Proof Committee Hansard, 29 April 2013, p 16.

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