Media Releases
Minerals Resource Rent Tax
02/07/10
Today’s proposal of a Minerals Resource Rent Tax is a positive step in addressing the uncertainty confronting the WA mining sector.
The Chamber of Minerals and Energy of Western Australia (CME) says it is now crucial that all companies are closely consulted, as negotiations enter a new phase.
CME Chief Executive Reg Howard-Smith said the proposed MRRT was a significant improvement on the original mining tax, announced by the federal government two months ago.
In welcoming the announcement, Mr Howard-Smith recognised the efforts of all parties in recent days, and looks forward to receiving more detail on the charter of the Policy Transition Group.
“CME has always believed a state-based royalty regime is best placed to ensure revenue and infrastructure investment is returned to the communities, from where our mineral wealth is extracted,” Mr Howard-Smith said.
“However, we acknowledge the federal proposal takes into account most of the core principles previously endorsed by CME members, which are vital if the government is to proceed with a mining rent tax.
“These principles include prospectivity, protection of Australia’s international competitiveness and differentiation by resource commodities.”
Mr Howard-Smith said the government must now directly engage with WA’s small and mid-tier companies, providing greater certainty.
“The new Policy Transition Group needs to consider the impact of the MRRT on companies, such as our emerging iron ore producers,” Mr Howard-Smith said.
“For example, magnetite producers will be delivering a value-added product, and the new tax must take this into consideration.”
CME will meet with Federal Resources Minister Martin Ferguson in Perth, early next week.