02 Nov 11 Minerals Resource Rent Tax Bills introduced
On 2 November 2011, the following Bills were introduced into the House of Representatives:
- Minerals Resource Rent Tax Bill 2011
- Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Bill 2011
- Minerals Resource Rent Tax (Imposition - General) Bill 2011
- Minerals Resource Rent Tax (Imposition - Customs) Bill 2011
- Minerals Resource Rent Tax (Imposition - Excise) Bill 2011
The Bills introduce a Minerals Resource Rent Tax (MRRT).
The MRRT is a tax on the economic rents miners make from the taxable resources (iron ore, coal and some gases) after they are extracted from the ground but before they undergo any significant processing or value add. ‘Economic rent’ is the return in excess of what is needed to attract and retain factors of production in the production process.
The MRRT is a project-based tax, so a liability is worked out separately for each project the miner has at the end of each MRRT year. The miner’s liability for that year is the sum of those project liabilities.
The tax is imposed on a miner’s mining profit, less its MRRT allowances, at a rate of 22.5% (that is, at a nominal rate of 30%, less a one-quarter extraction allowance to recognise the miner’s employment of specialist skills).
The MRRT applies from 1 July 2012.
For a copy of the Explanatory Memorandum to the Bills, go here
In joint media release No 2011/134, issued 2 November 2011, the Treasurer, Wayne Swan, and the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, commented on the amending legislation.
For a copy of the Minister's Second Reading Speech to the Bill, go here