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Minerals Resource Rent Tax

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2122: 735: 2134: 116:. The tax was similar in concept, although different in operation, to the existing Petroleum Resource Rent Tax levied on off-shore petroleum extraction activities. The Petroleum Resource Rent Tax is to be extended to all Australian onshore and offshore oil and gas projects as part of the new framework. 194:
Advertisements supporting or attacking the proposed tax ran on commercial television and in major newspapers. Funding for the mining lobby's advertisements came from the largest resource companies while funding for the Federal government's advertisements came from consolidated revenue. Julia Gillard
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The changes led to a reduction in the amount of revenue expected to be raised by the tax and offsetting reductions in the tax breaks the MRRT would have funded, for example; the proposed company tax cut was halved due to the reduction in revenue to be collected from the tax, along with reductions in
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by his then deputy, Gillard. Soon after the latter's appointment as leader, the government reached an agreement with several of the largest mining firms, including BHP Billiton, Xstrata and Rio Tinto, on changes that were announced on 2 July 2010. Negotiations with smaller companies did not take
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On 16 August 2013, the Treasury and Finance departments' pre-election Economic and Fiscal Outlook forecast an increase in forecasts for tax receipts over the next four years to almost $ 6 billion, $ 16.5 billion below its original projection. The government is paying back several of pre-payments
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On 12 February 2013, Rudd, one of the authors of the tax, stated that "Wayne Swan and Julia Gillard must bear the responsibility for Labor's mining tax and deal with the consequences its near non-existent revenue" as the expected revenue has not materialised. It raised $ 126 million in the
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elections promising to repeal the tax. The Coalition won the 2013 election, and repealed the tax in 2014. A January 2014 poll conducted by UMR Research, however, found that a majority of Australians still think that multinational mining companies do not pay enough tax. Supporters of the tax also
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The tax, levied on 30% of the "super profits" from the mining of iron ore and coal in Australia, was introduced on 1 July 2012. A company was to pay the tax when its annual profits reach $ 75 million, a measure designed so as not to burden small business. The original threshold was to be $
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Where a mining project interest or pre‑mining project interest was winding down or had ended, a rehabilitation tax offset may have arisen if upstream rehabilitation expenditure had occurred that would not otherwise have been taken into account in determining MRRT liability.
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released figures indicating mining interests had spent $ 22 m in campaigning and advertisements in the six weeks prior to the end of the Rudd prime ministership. Mining interests re-introduced the advertisements arguing against the proposed revised changes during the
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In May 2012 budget, the government said was the tax would bring in $ 3 billion for the financial year. In October 2012, the figure was reduced to $ 2 billion, while on 14 May 2013, it was announced that the receipts were expected to be less than $ 200 million.
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A total of $ 22.5 billion was expected to have been raised over the first four years of the tax, which would have been spent on pensions, tax cuts for small businesses and infrastructure projects, particularly in Queensland and Western Australia.
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The Coalition had promised at the 2010 and 2013 elections to repeal the tax. After winning the 2013 election, it introduced the Mining Tax Repeal Bill. After failing once, and following Coalition negotiations with the
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The controversy regarding the RSPT was such that an "ad war" between the government and mining interests began in May 2010 and continued until the downfall of Prime Minister Kevin Rudd in June 2010. The
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The tax also proved to be complex and expensive to operate. It cost more than $ 50 million to set up, with estimated running costs of $ 20 million a year. Advertising came to nearly $ 40 million.
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where the group mining profit was between $ 75 million and $ 125 million, a special calculation was used for determining the miner's liability, allocating group profits and allowances
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The response to the MRRT was mostly divided into supporter and opposition groups consisting of Federal government and opposition parties, lobby groups and the various stakeholders.
917: 292: 2092: 191:, listed by Forbes Australia in 2011 as Australia's wealthiest person, was a fierce opponent of the tax, arguing that it would drive away billions of dollars of investment. 2107: 1394: 1904: 2082: 870: 183:, mining lobby groups, being mainly led by the Association of Mining and Exploration Companies (AMEC) and the federal opposition (Liberal Party and National Party). 1914: 1894: 477: 156: 1596: 536: 1060: 1711: 1296: 1899: 896: 1083: 2160: 1569: 1438: 2087: 2072: 2067: 777: 2165: 1472: 123:
including gold, nickel and uranium mining as well as sand and quarrying activities. The tax was replaced by the MRRT following the appointment of
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did not publicly oppose the MRRT. Those opposing the tax included the mining industry, resource and mining organisations such as
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The RSPT was initially announced as part of the initial response to the Australia's Future Tax System review, known as the
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ceased the government's advertising after becoming prime minister and the mining lobby ended its ads shortly thereafter.
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supported the Bill on the condition that a committee be set up to independently assess the environmental risks posed by
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point to continually-large profits produced by Australian-based mining operations, 83% of which are foreign-owned.
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Treadgold, Tim (2 February 2011). "Miner's Daughter". Forbes: Australia's 40 Richest. Retrieved 10 September 2011.
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Where the miner had a group profit of less than $ 125 million, a low profit offset was available so that:
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Where a mining project interest's mining profit was negative, it was deemed to be nil for MRRT purposes.
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Cleary, P. 2011, Too Much Luck; The Mining Boom and Australia's Future, Black Inc; Collingwood, Victoria
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negotiated an amendment. Around 320 companies would have potentially been affected by the changes.
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as Prime Minister in late June 2010. Gillard made implementation of the tax her first priority.
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The tax was calculated separately for each mining project interest, according to the formula
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and several of its subsidiaries launched a lawsuit challenging the tax's validity under the
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Additional compliance costs for the mining sector reportedly ran into millions of dollars.
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Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012
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Allowances were available for deduction against mining profits in the following order:
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MRRT liability was nil where the group mining profit was less than $ 75 million
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Farm Household Support (Consequential and Transitional Provisions) Act 2014
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Opposition to the tax was cited by many commentators as one reason for the
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stated that the tax would reduce investment in Australia. Mining magnate
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on 5 September 2014. Its implementation took place over several dates:
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unanimously rejected the claim, declaring that the tax did not:
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The tax was initially set at 22.5%, based on the formula above.
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on 19 March 2012 by 38 votes to 32, with support of the Greens.
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News articles on mining super-tax compiled by mining website.
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Minerals Resource Rent Tax Repeal and Other Measures Act 2014
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Repeal of income support bonus (other amendments and savings)
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prevent the states from aiding mining activity under s.91, or
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give preference to one state over another contrary to s.99,
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with the support of the Greens and Wilkie. Independent MP
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Minerals Resource Rent Tax (Imposition—Customs) Act 2012
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Minerals Resource Rent Tax (Imposition—General) Act 2012
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Minerals Resource Rent Tax (Imposition—General) Act 2012
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Minerals Resource Rent Tax (Imposition—Excise) Act 2012
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A snip at $ 22m to get rid of PM: SMH 2 February 2011
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The RSPT was to be levied at 40% and applied to all
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in Australia. It was a replacement for the proposed
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Commonwealth of Australia. Archived from 398:where the extraction factor is set at 25%. 1597: 1583: 1575: 1250: 1248: 502:first six months since its introduction. 378: 355: 353: 237: 582:MRRT and related amendments and repeals 580: 43:on profits generated from the mining of 865: 863: 805: 803: 801: 766: 1026:. Money.ninemsn.com.au. Archived from 717:Schoolkids bonus (repeals and savings) 658:Low income superannuation contribution 144:Mining industry and political response 41:imposed by the government of Australia 1439:"Forecast bumps up mining tax intake" 963: 961: 428:Transferred pre‑mining loss allowance 163:. Unlike the RSPT, mining companies 59:50 million until independent MP 7: 2133: 1153:Hudson, Phillip (23 November 2011). 1503:Minerals Resource Rent Tax Act 2012 1228:Minerals Resource Rent Tax Act 2012 1084:"BHP calls for RSPT to be scrapped" 840:"Mining tax bills pass Lower House" 969:"Mining tax faces one more hurdle" 916:Luke Mansillo (19 February 2014). 366: 153:Australian Council of Trade Unions 151:The tax received support from the 25: 1413:"Swan reveals mining tax revenue" 431:Transferred mining loss allowance 159:and conditional support from the 2161:History of taxation in Australia 2132: 2121: 2120: 977:. Fairfax Media. 6 February 2012 871:"A New Resource Taxation Regime" 810:Phil Mercer (23 November 2011). 733: 938:"RSPT v MRRT - the differences" 287:{\displaystyle MRRT=A(B-C)-D-E} 133:Australian Electoral Commission 2166:History of mining in Australia 1869:Australian Securities Exchange 1203:"Mining tax passes the Senate" 1063:. The Australian. 24 July 2010 628:Deductions for motor vehicles 383: 369: 269: 257: 1: 706:Schoolkids bonus (amendments) 416:Transferred royalty allowance 2108:Australia–United Kingdom FTA 1712:Australian Capital Territory 480:of the then prime minister, 335:= rehabilitation tax offsets 155:, mining unions such as the 2083:Australia–United States FTA 1973:National Electricity Market 1377:"Mining tax revenue slumps" 1082:Neil Sands (11 June 2010). 506:already made for this tax. 2192: 1828:Minerals Resource Rent Tax 1556:Australian Taxation Office 712: 701: 690: 675: 664: 653: 639: 631: 623: 615: 607: 601:Minerals resource rent tax 596: 218:The tax was passed by the 29:Minerals Resource Rent Tax 2116: 2098:Trans-Pacific Partnership 2078:Australia–New Zealand FTA 2024:Social class in Australia 1833:Passenger Movement Charge 1381:The Sydney Morning Herald 1356:The Sydney Morning Herald 1207:The Sydney Morning Herald 603: 592: 589: 586: 523:Constitution of Australia 459:Rehabilitation tax offset 419:Pre‑mining loss allowance 49:Resource Super Profit Tax 18:Mineral Resource Rent Tax 1958:Energy efficiency rating 1813:Goods & Services Tax 946:. Melbourne. 2 July 2010 645:Superannuation Guarantee 525:. On 7 August 2013, the 478:replacement in June 2010 2103:Indonesia–Australia FTA 527:High Court of Australia 425:Starting base allowance 45:non-renewable resources 1650:Snowy Mountains Scheme 1625:Banking crisis of 1893 1460:[2013] HCA 34 519:Fortescue Metals Group 402:Profits and allowances 390: 288: 173:Fortescue Metals Group 902:Sydney Morning Herald 754:Petroleum Revenue Tax 555:Melbourne Corporation 422:Mining loss allowance 391: 289: 138:2010 federal election 2014:Poverty in Australia 1606:Economy of Australia 1462: (7 August 2013) 1340:, ss. 225-15, 225-20 485:place at this time. 352: 236: 2093:Japan–Australia FTA 2088:China–Australia FTA 2073:Australia–Korea FTA 2068:Australia–Chile FTA 2029:Wealth in Australia 2009:Income in Australia 1992:Economic conditions 1888:Regulatory agencies 1847:Banking and Finance 1635:Four pillars policy 1401:. 12 February 2013. 877:on 27 February 2012 749:Mining in Australia 583: 572:Palmer United Party 329:= low profit offset 199:Passing of the 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BBC 2045:ACTU 1905:ASIC 1900:APRA 1895:ACCC 1790:Wine 1563:2013 1485:2013 1425:2013 1363:2013 1215:2012 1189:2012 1163:2011 1131:2012 1095:2011 1069:2010 1036:2010 1009:2010 983:2012 952:2010 883:2012 854:2012 826:2012 792:2010 342:Rate 303:MRRT 226:Levy 179:and 167:and 108:and 80:2013 78:and 76:2010 66:The 53:RSPT 33:MRRT 27:The 1920:FWC 55:). 2157:: 1554:. 1475:. 1441:. 1415:. 1397:. 1379:. 1354:. 1299:. 1286:^ 1247:^ 1205:. 1179:. 1121:. 1086:. 999:. 971:. 960:^ 940:. 920:. 899:. 862:^ 842:. 814:. 800:^ 780:. 769:^ 364:30 175:, 112:, 104:, 1880:) 1871:( 1819:) 1815:( 1598:e 1591:t 1584:v 1565:. 1487:. 1427:. 1383:. 1365:. 1217:. 1191:. 1165:. 1133:. 1097:. 1071:. 1038:. 1011:. 985:. 954:. 926:. 905:. 885:. 856:. 828:. 794:. 684:) 655:7 641:6 633:5 625:4 617:3 609:2 598:1 539:, 384:) 373:1 370:( 361:= 333:E 327:D 321:C 315:B 309:A 282:E 276:D 270:) 267:C 261:B 258:( 255:A 252:= 249:T 246:R 243:R 240:M 51:( 31:( 20:)

Index

Mineral Resource Rent Tax
resource rent tax
imposed by the government of Australia
non-renewable resources
Andrew Wilkie
Coalition
Tony Abbott
2010
2013
Henry Tax Review
Treasurer
Wayne Swan
Prime Minister
Kevin Rudd
extractive industry
Julia Gillard
Australian Electoral Commission
2010 federal election
Australian Council of Trade Unions
Construction, Forestry, Mining and Energy Union
Australian Greens
BHP Billiton
Rio Tinto
Fortescue Metals Group
Xstrata
Hancock Prospecting
Andrew Forrest
Gina Rinehart
lower house
Tony Windsor

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