The Government last night delivered an historic reform to share the benefits of the mining boom and deliver a fair return to Australians from the development of the nation's resource wealth.
The Minerals Resource Rent Tax (MRRT), which was passed last night by the Senate, will help spread the benefits of the mining boom to all Australians and strengthen our whole economy.
Australians know how important the mining industry is, but they also know that we can only dig up and sell the resources once.
The MRRT will deliver Australians with a fair return on the resources they own 100 per cent.
Only super-profitable mining companies will pay the MRRT and the proceeds will go to where they can make the greatest contribution to jobs and economic growth - to cutting taxes for all companies, to infrastructure, and increased superannuation which will boost our national savings.
The MRRT will deliver:
- A major new tax break for Australia's 2.7 million small businesses as well as a cut to the company tax rate for all businesses, with small businesses getting a one year head-start;
- A boost to the superannuation for 8.4 million workers, which will increase the nation's savings pool by $500 billion by 2035;
- A much needed extra superannuation contribution for 3.6 million low-income-earners; and
- Critical investment in roads, bridges and other infrastructure, particularly in our great mining regions.
Tony Abbott has opposed this important reform every step of the way, insisting that the benefits of the mining boom should not be shared by all Australians.
Mr Abbott and the Coalition have decided to turn their backs on small business, Australians workers and the broader community, and instead want to give a tax cut to super-profitable mining companies.
Most of those who will be paying the MRRT understand the importance of reforming the taxation of resources and support this critical economic reform.
Mining is a great Australian industry that is going from strength to strength in full knowledge of the introduction of the MRRT. New investment in the resources sector has risen from $47 billion in 2010-11 to $95 billion this year, to an expected $120 billion in 2012-13.
The MRRT is central to the Government's plan to spread the benefits of the mining boom to more Australians for generations to come.
The Gillard Government believes all Australians should share in the benefits of the mining boom, not just a fortunate few.