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Mining tax loophole needs to be plugged to stop Newman's cash grab



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Christine Milne

Australian Senate Australian Greens Leader

media release

Tuesday 11 September 2012 Mining tax loophole needs to be plugged to stop Newman’s cash grab The Australian Greens will introduce a bill today to ensure that Queensland Premier Campbell Newman’s foreshadowed increase in state mining royalties will not simply see Commonwealth taxpayers handing over billions of dollars to hugely profitable mining corporations. The bill locks the state royalty rebate from the Minerals Resource Rent Tax at the level it was on July 1, 2011, preventing State Premiers from gouging Commonwealth coffers and making it more difficult for Australia to invest in much-needed social reforms like publicly-funded dental care, fair school funding and a comprehensive National Disability Insurance Scheme. “Until this loophole is closed, Campbell Newman, Colin Barnett and co can lift state mining royalties as high as they like in the full knowledge that it is the Commonwealth government who will foot the bill,” Leader of the Australian Greens, Senator Christine Milne said today. “This loophole and the gouging by State Premiers that it will encourage puts at risk the government’s ability to care for people and prepare Australia for the challenges of this century. “Instead of slashing thousands of jobs of people working in the public service, putting clean energy grants on hold, and ignoring people struggling to make ends meet on Newstart, the Government should plug this loophole and save some $10 billion out to 2020. “Beyond that, if we actually implemented what former head of Treasury Ken Henry recommended, we would broaden the tax base and raise the revenue to fund better schools for all our children, publicly-funded dental care, the transition to 100% clean, renewable energy and lifting living standards of the poorest in our community. “We need to diversify our economy, support our manufacturing base, and skill up our workforce. “What we don’t want is to throw yet more money at profitable vested interests.” Contact Alexandra Lamb on 0437 587 562

11/9/2012 1:51 PM

9153

2010-2011-2012

The Parliament of the Commonwealth of Australia

THE SENATE

Presented and read a first time

DRAFT-IN-CONFIDENCE This draft is supplied in confidence and should be given appropriate protection.

Minerals Resource Rent Tax (Protecting Revenue) Amendment Bill 2012

No. , 2012

(Senator Milne)

A Bill for an Act to amend the Minerals Resource Rent Tax Act 2012, and for related purposes

i Minerals Resource Rent Tax (Protecting Revenue) Amendment Bill 2012 No. , 2012 11/9/2012 1:51 PM

Contents 1 Short title ........................................................................................... 1

2 Commencement ................................................................................. 1

3 Schedule(s) ........................................................................................ 1

Schedule 1—Amendments 2

Minerals Resource Rent Tax Act 2012 2

Minerals Resource Rent Tax (Protecting Revenue) Amendment Bill 2012 No. , 2012 1 11/9/2012 1:51 PM

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DRAFT-IN-CONFIDENCE

This draft is supplied in confidence and should be given appropriate protection 6

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A Bill for an Act to amend the Minerals Resource 9 Rent Tax Act 2012, and for related purposes 10

The Parliament of Australia enacts: 11

1 Short title 12

This Act may be cited as the Minerals Resource Rent Tax 13 Amendment Act 2012. 14

2 Commencement 15

This Act commences on the day this Act receives the Royal 16 Assent. 17

3 Schedule(s) 18

Each Act that is specified in a Schedule to this Act is amended or 19 repealed as set out in the applicable items in the Schedule 20 concerned, and any other item in a Schedule to this Act has effect 21 according to its terms. 22

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2 Minerals Resource Rent Tax (Protecting Revenue) Amendment Bill 2012 No. , 2012 11/9/2012 1:51 PM

Schedule 1—Amendments 1 2

Minerals Resource Rent Tax Act 2012 3

1 Section 2-1 4 Omit “Commonwealth, State and Territory mining royalty amounts”, 5 substitute “mining royalty amounts under Commonwealth, State and 6 Territory laws as in force on 1 July 2011”. 7

2 At the end of section 60-25 8 Add: 9

(3) If a *Commonwealth law, a *State law or a *Territory law under 10 which expenditure constituting a *mining royalty is made is 11 modified on or after 1 July 2011, disregard the modification for the 12 purposes of working out the amount of a *royalty credit under this 13

section to the extent that the modification results in the amount of 14 the mining royalty being greater than would have been the case had 15 the modification not been made. 16

(4) Subsection (3) applies whether the law is modified by the insertion, 17 omission, repeal, substitution or relocation of words or matter, or 18 by any other means. 19

3 Application 20 The amendment made by item 2 of this Schedule applies to royalty 21 credit for the MRRT year that started on 1 July 2012 and to royalty 22 credit for later MRRT years. 23