Australia Mining Tax Brings in Only 600k

July 31, 2014 Taxation in Australia

CANBERRA – Australia’s mining tax is bringing in less than a one percent of the amount it was expected to raise this year.

Australia only collected AUD 600 000 in tax revenues from Minerals Resource Rent Tax (MRRT) over the three month ending in June 2014, falling well short of the government’s forecast of AUD 150 million for the period, according to a statement issued on July 30th by the Treasurer of Australia Jon Hockey.

The Mineral Resource Rent Tax, which was first proposed in 2010, was originally expected to raise AUD 49.5 billion in taxes over the years between 2012 and 2016, however, the details of the tax were later revised and the revenue estimate for the same period was reduced to AUD 26.5 billion.

However, in reality the government currently only expected to see total collections of only AUD 300 million over the course of this year.

The Treasurer pointed out that the tax collections from the MRRT are falling well below any expectation, even though the government has already earmarked all of the expected collections for a number of social and infrastructure development projects.

Some taxation experts in Australia have come forward to say that the tax may actually cost more to administer and enforce than it brings in through revenues.

Photo By: Jennifer Woodard Maderazo