Mining Tax Floundering in Australia
May 7, 2013 Taxation in Australia
CANBERRA – Australia’s controversial mining tax has suffered another setback, as the tax is now expected to bring in less than a third of the revenues which were originally anticipated.
Australia’s Mineral Resource Rent Tax (MRRT) is not bringing in the tax revenues which were expected by the government, and the revenue forecast for the tax has been downgraded yet again again, now reaching a new low of only AUD 800 million in 2013, according to a new report commissioned by the Green party of Australia and released by the Parliamentary Budget Office of Australia on May 6th.
When the tax was originally instated in 2012 the government had forecast that it would raise in excess of AUD 3 billion in extra taxes, however the estimate was downgraded to AUD 2 billion later in the year.
The PBO estimates that over the next four years the cumulative tax revenues from the MRRT will only reach AUD 7.2 billion.
According to the Green Party, if the MRRT was overhauled to close currently existing loopholes and expanded to include profits from the extraction of all minerals and metals, the tax could raise AUD 26.2 billion over the next four years.
Commenting on the tax and the reduced forecast, the leader of the Green party Christine Milne said, “…it’s hard to believe that the Government has been through all this pain with the mining tax and when push comes to shove so little is being raised.”
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