The Mining Tax: A bad tax out of a flawed process

The Mining Tax: A bad tax out of a flawed process

29 June 2011

© Commonwealth of Australia 2011
ISBN 978-1-74229-492-6

View the report as a single document - (PDF 2914KB)


View the report as separate downloadable parts:

Membership of Committee (PDF 10KB)
 
Executive Summary (PDF 110KB)
 
Summary of Recommendations (PDF 150KB)
 
Chapter 1 - Inquiry into a national mining tax (PDF 27KB)

Terms of reference
Structure of the report

 
Chapter 2 - An overview of the development of recent Resource Rent Tax proposals (PDF 240KB)

Introduction
The Government's Response to the Henry Tax Review
Replacing the RSPT — Introduction of the MRRT and expanded PRRT
The MRRT Implementation Committee - Policy Transition Group
Committee comment

 
Chapter 3 - A taxing time: the development of the Resources Super Profits Tax, the Mineral Resources Rent Tax and expanded Petroleum Resources Rent Tax (PDF 319KB)

Introduction
The government's initial consultation process and response for the RSPT
The states and the RSPT
Secret and exclusive: the MRRT and expanded PRRT development process
The Government's failure to implement best-practice regulation principles
The Treasury and the development of the MRRT and expanded PRRT
The Implementation Committee – renamed 'Policy Transition Group'
The Resource Tax Implementation Group
General comments on the policy development process
Transparency
Senate Committees, the Executive and Departments
Committee comment

 
Chapter 4 - The Mineral Resources Rent Tax and expanded onshore Petroleum Resources Rent Tax (PDF 351KB)

Introduction
The MRRT[1] – Increasing distortions
The MRRT - A narrowly based tax, but for how long?
The MRRT - Uncertainty and compliance burdens
The 'big three mining' companies
The Treasury
The Western Australian Treasury
MRRT – Less fair, royalty credits which are non-refundable, non-transferable
MRRT – More complex and administratively burdensome, the $50 million profit threshold
The Petroleum Resource Rent Tax
Committee comment

 
Chapter 5 - Broader economic consequences of the flawed Mineral Resources Rent Tax and the expanded Petroleum Resources Rent Tax (PDF 678KB)

Introduction
Competitive advantage for the big three miners
Sovereign risk
A flawed foundation – pure resource rents do not exist
Revenue, spending and structural deficit under the MRRT and PRRT
Revenue raised from the MRRT
Costs of measures associated with the MRRT and expanded PRRT
The structural deficit
Consequences for the broader economy

 
Chapter 6 - The taxation of non-renewable resources and implications for the federation (PDF 531KB)

Introduction
The mining industry in Australia
The mining industry and royalties
The importance of royalty revenue
Mining, royalties and the federation
Gillard Government version of the mining tax:  A tax on Western Australia
Horizontal fiscal equalisation
Reforming the Commonwealth Grants Commission framework
The Commonwealth declares a tax war against the resource states
The further erosion of the credibility of the Commonwealth Grants process
Constitutional issues
Committee comment

 
Chapter 7 - Australia needs genuine tax reform not lazy tax grabs (PDF 71KB)

A lack of strategic, coordinated and coherent framework for tax reform
A framework to get taxation reform right
Committee comment: Another missed opportunity

 
Government Senators Dissenting Report (PDF 151KB)

Introduction
Current mining boom
The resources of all Australians
Mining profits
The Government’s tax reforms
The MRRT
Royalties are a poor way of getting a return from the resources we own
Development of the MRRT and PRRT
Conclusion and recommendation

 
APPENDIX 1 - Submissions Received (PDF 26KB)

TABLED DOCUMENTS

 
APPENDIX 2 - Public Hearings and Witnesses (PDF 51KB)
 
APPENDIX 3 - Terms of Reference Australia’s future tax system[1] (PDF 115KB)

Objectives and scope
Composition and consultation
Structure and timing

 
APPENDIX 4 - Mineral Resource Rent Tax Heads of Agreement* (PDF 130KB)
 
APPENDIX 5 - Policy Transition Group List of Recommendations (PDF 134KB)

MRRT RECOMMENDATIONS
PRRT RECOMMENDATIONS

* Only available in PDF

For further information, contact:

Committee Secretary
Select Committee on the Scrutiny of New Taxes
PO Box 6100
Parliament House
Canberra ACT 2600
Australia

Phone: +61 2 6277 3555
Fax: +61 2 6277 3899
Email: seniorclerk.committees.sen@aph.gov.au

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