Senate Should Repeal Mining Tax

Joint statement from John Osborn, Chief Operating Officer, Australian Chamber of Commerce and Industry; Jennifer Westacott, Chief Executive, Business Council of Australia; and Brendan Pearson, Chief Executive, Minerals Council of Australia.

Three of Australia’s leading business groups are today calling on the Senate to repeal the Minerals Resource Rent Tax.

The tax imposes an unnecessary additional burden on Australia’s mining industry, which already pays about $20 billion a year in company tax to the Commonwealth and royalties to state governments.

It also acts as a disincentive to invest in Australia’s minerals sector at a time when the industry is facing pressing challenges to improve productivity and cost competitiveness.

The mining tax is simply another layer of tax on top of company tax and royalties. It does not constitute tax reform.

Repeal of the MRRT will help improve Australia’s reputation as an attractive investment destination in the highly competitive global resources market. A strong, growing industry attracting investment will secure prosperity, jobs and higher government revenues for Australia into the future.

Australia’s mining industry has paid almost $117 billion in company tax and state royalties since 2006–07.

What the mining sector needs now is a reduction in costs, and certainty about the tax environment it operates in. That will help bring home the next wave of investment in this important sector.

The Senate should vote this week to repeal the MRRT.

For further information, contact:

John Osborn, Chief Operating Officer, Australian Chamber of Commerce and Industry,
telephone (02) 6273 2311, mobile 0413 974 300

Scott Thompson, Director, Media and Public Affairs, Business Council of Australia,
telephone (03) 8664 2603, mobile 0403 241 128

Ben Mitchell, Director – Public Affairs, Minerals Council of Australia,
telephone (02) 6233 0600, mobile 0419 850 212

Repeal of Mining Tax Should Be Supported (24 October 2013)