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Minerals Resource Rent Tax Bill 2011

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2010-2011-2012

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

Minerals Resource Rent Tax Bill 2011

 

 

(1)     Clause 20-5, page 15 (after line 18), after paragraph (1)(d) insert:

                          (e) gold

                (f) uranium

                (g) rare earth metals.           

 

 [addition of gold, uranium and rare earth metals]



 

 

Minerals Resource Rent Tax Bill 2011

 

 

 

Statement pursuant to the order of

the Senate of 26 June 2000

 

 

 

 



Amendment (1)

 

The effect of this amendment is to expand the coverage of the Minerals Resource Rent Tax to include gold, uranium and rare earth metals. This will have the effect that entities which would otherwise not be liable to pay the Minerals Resource Rent Tax would be liable to pay the tax. If the Minerals Resource Rent Tax Bill 2001 is a bill imposing taxation, the request for the amendment is a request to amend a bill imposing taxation. 

 

According to Odgers' Australian Senate Practice (12 th edition), page 283:

"If a bill does not impose taxation, the Senate amend it, and if a bill does impose taxation the Senate may seek amendments to it by way of requests."

 

The Senate has long followed the practice that it should treat as requests amendments to bills that impose taxation.

 

On the basis that these amendments amend a bill imposing taxation, it is in accordance with the precedents of the Senate that these amendments be moved as requests.

 

 

 

 

 

 

Statement by Senator Bob Brown of the Senate pursuant

to the order of the Senate of 26 June 2000

 



     

Australian Greens Amendment - unnumbered sheet

 

 

 

Minerals Resource Rent Tax Bill 2011

 

 

 

Statement pursuant to the order of

the Senate of 26 June 2000

 

 

To be circulated separately

 

 

 

Statement by the Clerk of the Senate pursuant

to the order of the Senate of 26 June 2000

 

 

The amendments to the Minerals Resource Rent Tax Bill 2011 circulated by the Leader of the Australian Greens, Senator Bob Brown, broaden the tax base proposed by the bill by adding gold, uranium and rare earth metals to the materials that the scheme taxes, effectively coal, iron ore and coal seam gas. By proposing to tax substances that are not currently subject to the tax, the request for the amendment transforms the bill into a bill imposing taxation. Under section 53 of the Constitution, the Senate may not initiate a bill imposing taxation. According to Odgers’ Australian Senate Practice (12 th edition), page 299:

 

… it could be argued that it would be open to the Senate to request the insertion in a bill originating in the House of a provision having the effect of imposing taxation. The better view, however, is that such amendments may not be moved in the Senate at all, in that, by turning a bill into a bill imposing taxation, they are contrary to the initiation provision of the first paragraph of section 53 of the Constitution.

 

This was the subject of a ruling by President Calvert in 2003 in similar circumstances. In relation to the Customs Tariff Amendment (ACIS) Legislation Bill 2003, amendments were ruled out of order (and were withdrawn by Senator Bob Brown) because they would have had the effect of converting the bill into a bill imposing taxation and the Senate cannot initiate a bill imposing taxation under paragraph 1 of section 53 of the Constitution.. The Minerals Resource Rent Tax Bill 2011 is not a bill imposing taxation as it does not actually impose the tax or set the rates of the tax. For the Senate to amend such a bill so as to broaden the base of the tax is the equivalent of the Senate initiating an imposition of tax. This is unconstitutional.

 

It is not in accordance with the practices and precedents of the Senate that this amendment be moved in the form of a request. Furthermore, the amendment is not in order according to the practices and precedents of the Senate.