Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Swan desperate to hide mining tax budget black hole

Download PDFDownload PDF

Media Release Senator Mathias Cormann Shadow Assistant Treasurer Shadow Minister for Financial Services and Superannuation

12/0625/MC 25 June 2012

Swan Desperate To Hide Mining Tax Budget Black Hole

Treasurer Wayne Swan must come clean about his secret mining tax budget black hole.

The Treasurer must come clean about the secret mining tax revenue assumptions he used to estimate MRRT revenue in the wake of further revelations that Labor’s mining tax will not raise the revenue the government says it will raise.

Specifically the Treasurer must release the commodity price and production volume assumptions he has used to estimate the MRRT revenue.

This is information which is published by relevant State governments as a matter of course in their budget papers to ensure revenue estimates which are sensitive to those variables can be properly scrutinised.

Yet Wayne Swan is treating that information like a national security secret. What has he got to hide?

Labor must also release the cost to the budget of the market valuation method Julia Gillard and Wayne Swan negotiated personally as part of the revised mining tax.

Given the UBS analysis today it is obvious that Wayne Swan is hiding a big Budget black hole.

UBS analysis today confirmed what the Coalition has been asserting for a very long time - that the MRRT will not raise the revenue the government says it will raise and that it is a fiscal train wreck in the making.

Clearly the government has inflated their revenue estimates by using excessively optimistic commodity prices forecasts.

They also have not taken the realistic value of the various deductions into account which Julia Gillard and Wayne Swan offered to the three biggest miners as part of their personally negotiated exclusive deal.

The Coalition has said from the outset that Labor’s mining tax was a fiscal train wreck in the making.

We have long pointed out that it is not sustainable to link a highly volatile downward trending revenue source like Labor’s MRRT to a series of promises which have a fixed cost and will continue to increase over time,” Senator Cormann said.

The MRRT is a highly complex, distorting tax which leaves the Budget worse off and will create significant compliance costs to business.

Only Labor can come up with a multi-billion dollar new tax which leaves the Budget worse off.

In fact Labor has come up with two such taxes in the mining tax and the carbon tax, which both leave the Budget worse off.

The mining and the carbon tax are bad for our economy and bad for our federal budget. They came out of bad processes and the Coalition will scrap them both.

MEDIA CONTACT: Senator Cormann 0411 874 546