The Treasury has today released for public comment draft legislation for the introduction of the Minerals Resource Rent Tax (MRRT).
The preliminary exposure draft legislation is based on the recommendations of the Policy Transition Group and establishes the framework for the operation of the MRRT.
The draft is not exhaustive and is intended to provide stakeholders with an early overview of the legislation. The Government intends to release a second and final exposure draft for public consultation later in the year.
We encourage stakeholders to make submissions on the preliminary draft. The Government values the constructive consultation it has been having with the mining industry and tax professionals, and these submissions will play an important role in informing the detailed design of the new resource tax arrangements.
We thank the Resource Tax Implementation Group (RTIG), which comprises representatives of industry and the tax profession as well as government officials, for their substantial input to date on the draft bill. Consultation with the Group has identified some technical issues in the legislation that the Treasury and RTIG will continue to work on. These issues will be covered in the second exposure draft release.
The Treasury will release exposure draft legislation relating to amendments to the Petroleum Resource Rent Tax (PRRT) in the near future. The introduction of the MRRT and changes to the PRRT, which were announced last year, will come into operation from 1 July 2012.
These reforms will ensure Australians receive a better return from their non-renewable resources and will help strengthen our economy through increased superannuation, new and better infrastructure, and business tax cuts. These initiatives are crucial to maximise the opportunities presented by Mining Boom Mark II, and will ensure all Australians receive a fair return from the nation’s resources.Copies of the MRRT draft and supporting materials are available on the Treasury website. Consultation on the preliminary draft closes on 14 July.
10 June 2011