The Gillard Government today releases the second exposure draft legislation for the Minerals Resource Rent Tax (MRRT) - a critical reform that will help address the challenges of our patchwork economy and lock in the benefits of the mining boom.
The draft legislation establishes the framework for the operation of the MRRT and takes into account comments received during the initial consultation process. We thank all those who have contributed to this consultation thus far, and we encourage stakeholders to continue to engage as the legislation is finalised.
While the policy remains the same, the second draft contains changes that strengthen the integrity of the tax.
We thank in particular the Resource Tax Implementation Group (RTIG), which comprises representatives from industry and the tax profession as well as government officials, for their continuing and constructive input into the draft legislation. The Treasury will continue to work closely with the RTIG in refining the legislation for introduction to Parliament.
The revenue from the MRRT will support all Australian businesses, including those that aren't in the fast lane of the mining boom, through a cut to the corporate tax rate and substantial tax relief for the nation's 2.7 million small businesses. It will also support the Regional Infrastructure Fund that will build roads, rail and other critical infrastructure. Australia's 8.4 million workers will benefit from a boost to the superannuation guarantee.
Australia's mining industry is continuing to power ahead. Earnings from energy and mineral exports set a new record in 2010-11 of $175 billion. The $430 billion pipeline of resource and energy projects either planned or already under construction indicates that this strong performance is set to continue as companies invest in growing the industry even further.
The MRRT will help Australia maximise the opportunities presented by Mining Boom Mark II, and ensure all Australians receive a fairer return from the nation's non-renewable resource wealth.
Copies of the MRRT second exposure draft legislation and supporting materials are available on the Treasury website. Consultation closes on 5 October 2011.