Minerals Resource Rent Tax Bill 2011

The majority voted against an amendment introduced by Nationals MP Tony Crook.

The amendment would exclude magnetite from the operation of the minerals resource rent tax. MP Crook explains that magnetite ore has very little value in its raw state and so must be heavily processed before it is of significant value.(Read MP Crook's whole explanation here. ) He said that "the government has indicated that the magnetite industry is unlikely to pay the mining tax" and so it should be excluded to increase investment and certainty.

Background to the bill

The Minerals Resource Rent Tax Bill 2011 is one of eleven bills that were introduced as a package to introduce a minerals resource rent tax ('MRRT').(Read more about the MRRT here.) The tax is set to begin on 1 July 2012 and apply to profits earned from the extraction of mineral resources such as coal and iron ore.

The eleven bills are:

• 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
• Petroleum Resource Rent Tax Assessment Amendment Bill 2011
• Petroleum Resource Rent Tax (Imposition—General) Bill 2011
• Petroleum Resource Rent Tax (Imposition—Customs) Bill 2011
• Petroleum Resource Rent Tax (Imposition—Excise) Bill 2011
• Tax Laws Amendment (Stronger, Fairer, Simpler and Other Measures) Bill 2011
• Superannuation Guarantee (Administration) Amendment Bill 2011

References