Government and Crossbench must support a fairer MRRT, Crook
Author: Tony Crook
Published on: 21-November-2011
Nationals WA Member for O’Connor Tony Crook MP has called on the Government and members of the Crossbench to support his amendments to the Minerals Resource Rent Tax (MRRT) to ensure junior miners will not be unfairly penalised by the new tax.
Mr Crook said he will maintain his stance and vote against the MRRT regardless of whether his amendments are supported; however, his amendments are necessary to safeguard junior miners if the tax is passed.
“If the MRRT is passed unamended this week, it will be to the detriment of more than 300 junior miners who have been left out of negotiations, and it will be to the detriment of the many regional communities whose livelihoods hinge on the resources sector.”
Mr Crook said he will be moving three separate amendments to the MRRT to allow junior miners to be treated more equitably:
1. 10 million tonnes per annum threshold
Following consultation with industry, this amendment will introduce a threshold of 10 million tonnes of group production of iron ore or coal each year. This amendment will establish a safe harbour for junior miners, and set a reasonable trigger point for the Mining Tax to be implemented.
2. Establishing a fairness benchmark
Industry modelling has indicated that the Big Three mining companies who negotiated the mining tax – BHP Billiton, Rio Tinto and Xstrata – are unlikely to pay the MRRT before junior miners. This amendment will ensure that no miner will pay the MRRT earlier, or at a higher rate, than the Big Three.
3. Exclusion of Magnetite Ore from the MRRT
This amendment will exclude magnetite iron ore operations from the MRRT. Treasury have consistently said that the government is not forecasting MRRT revenue from magnetite. The MRRT is resulting in significant investor uncertainty and will result in significant compliance costs for magnetite operations.
Mr Crook said the MRRT in any form would be a millstone around the neck of Australia’s resource sector.
“The MRRT is essentially a tax on WA’s economy. Canberra is already taking an unfair proportion of our GST – now they want our resources revenue as well,” Mr Crook said.
“I can not sit by and watch an unfair tax be implemented to the detriment of regional Australia.
“I don’t think anyone would agree that it is fair for a junior mining company to be paying the MRRT when BHP Billiton, Rio Tinto and Xstrata may be exempt due to tax offsets.
Mr Crook said today’s announcement by the Government to raise the MRRT threshold from $50 million to $75 million did not go far enough.
“I have spoken to representatives from the resources sector after this announcement today and they agree that it does not go anywhere near far enough to be a reasonable safeguard for junior miners.”
See this article on the member's website