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)

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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