Australian lawmakers vote to scrap 2011 tax on coal, iron ore miners

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ATAHK reads from Chem Het News that Australia's upper house voted Tuesday, September 2, to repeal a 30% tax on coal and iron ore mining profits above A$75 million/year ($69 million). The Minerals Resource Rent Tax was narrowly passed in November 2011 by the previous Labor government, which was voted out in September 2013. "The government has delivered on our commitment at both the 2010 and 2013 elections to scrap the failed MRRT," For details, please refer to the following news from Chem Het News on 2014 September 3th:

Australia's Finance Minister Mathias Cormann and Treasurer Joe Hockey said in a joint statement. "While the government's negotiated package will be budget neutral in the medium term, abolishing the complete mining tax package will save the budget around A$50 billion over the next decade," they added. The MRRT has been controversial since taking effect in July 2012, as it has fallen short of the previous government's revenue-raising targets. In fiscal 2013-14, the tax was expected to raise A$700 million, compared with A$4 billion estimated at the time of the 2011 budget.

The tax was expected to raise net revenue of A$300 million in fiscal 2014-15, a recent government statement said. For the April-June quarter, it raised A$600,000. The repeal legislation now heads to the House of Representatives, where it is expected to pass.

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