The Independent Member for Denison, Andrew Wilkie, will support the MRRT after securing a better deal for small miners.
“Although I would have preferred a genuine super profits tax on all sectors of the economy including banking, I do see merit in returning a fairer share of the resources boom to the community and will not stand in the way of the MRRT,’’ Mr Wilkie said.
“But the MRRT needs to also be fair to business and the $50m threshold and depreciation provisions in the Bill patently favour the big miners over the smaller companies.
“So I’m pleased to be able to announce the Government has agreed to amend the Bill to raise the threshold to $75m with the tax phased in to $125m.
“I understand this will reduce the number of resource companies paying the full rate of the tax to 20 to 30 and cost about $100m over the forward estimates.’’
“I wanted to go further but the Government wouldn’t come at it given the budget cost and this is the best I could achieve.’’
Mr Wilkie said his support for the MRRT is in part out of consideration for the substantial benefits that will flow to the community.
He said, for example, his electorate of Denison would benefit from the increase in the Superannuation Guarantee and the introduction of a low-income earners contribution.
“There are around 34,200 workers in Denison who will benefit from the Superannuation Guarantee increase,’’ he said. “A further 18,500 low-income earners in Denison will benefit from the boost to low-income super.
“Business in Denison will also benefit on account of new business depreciation provisions and a cut in the company tax rate.’’
• Senator Bob Brown: Ensure mining tax delivers revenue
The Australian Greens are proposing amendments to the watered-down mining tax which are revenue positive and the Gillard Government should ensure that the revenue from the tax is not further undermined.
“The Greens want a fairer mining tax, a genuine super profits tax. If there is to be any change to the mining tax it should be, at the very least, revenue neutral,” Australian Greens Leader Bob Brown said in Canberra today.
“Raising thresholds at which the Minerals Resource Rent Tax kicks in will further undermine the already meagre revenue stream. We will not entertain any further erosion of the income from our country’s mineral wealth that should be flowing to the Australian people to fund national dental care, education, clean technologies and big-ticket items such as high-speed rail.”
“Mr Abbott also has questions to answer. How will the Opposition fund its commitments, including its superannuation pledge, without the mining tax and with a budget black hole that is expanding towards $100 billion?”
• Below the audio link for the Greens’ response to the proposed raising of the MRRT threshold:
http://bob-brown.greensmps.org.au/content/greencast/bob-brown-press-conference-rejecting-amendments-which-further-erode-mrrt-revenue
