18 July 2014
The Government committed to repeal the Minerals Resource Rent Tax (mining tax) and its associated spending measures in an entirely transparent manner at both the 2010 and 2013 Federal Elections.
When announced by Labor, the mining tax was supposed to raise $12 billion over its first two years of operation, instead it has raised closer to $300 million – or around 3% of what was promised, with most of it progressively refunded to mining tax payers.
Fewer than 20 taxpayers contributed to the meagre revenue raised, but over 125 other miners are complying with the mining tax legislation, while not actually paying any tax. The tax has already cost the ATO over $50 million to administer.
The former Labor Government locked in over $17 billion of expenditure over the current forward estimates (including 2017-18) against the non-existent proceeds of this failed tax.
The Government cannot afford to keep borrowing money to pay for this kind of unfunded spending.
Labor voted to keep every dollar of unfunded spending linked to the mining tax, and then voted to keep the failed tax.
Labor should immediately outline how it will fund all of the spending linked to the mining tax.
The Government will not accept amendments which support these unfunded spending measures remaining in place.
By voting to keep many of the associated spending measures, Senators have effectively voted to keep the mining tax.
Updated costings for the repeal of the mining tax and all its associated measures over the current forward estimates have been provided below.
Since 1 July 2012 the Minerals Resource Rent Tax has raised $340 million on a net basis, with forecast revenue routinely written down each Budget update.
Courtesy of the Ministry of Finance & The Treasury