Sharman Stone MP

Mining Tax set to Further Hinder Australian Business and Communities

November 23, 2011

The Minerals Resource Rent Tax (MRRT) is going to have an impact on not just the minerals industry but small businesses and communities across Australia.

Dr Sharman Stone, Federal Member for Murray, said, “The introduction of this tax is all about finding more cash to help return this mismanaging Labor Government back to surplus by the next budget.

“When the Rudd Government replaced the Howard Coalition in 2007 they inherited a substantial surplus of $20 billion with no net debt, and $45 billion in the bank. There was also a future fund.

”However, in the last four years the Labor Government has gone on a spending spree. They have racked up $150 billion worth of deficits and more than $200 billion of gross debt. Every individual Australian now represents over $4000 of new Labor Government debt. This mining tax is a desperate bid to find cash to try to fix their financial mismanagement,” Sharman Stone said.

“The Government should not have to raise taxes to pay more superannuation. They should have money in the bank.

“This new tax was negotiated with the three large companies, BHP, Rio Tinto and Xstrata. Their competitors were excluded from negotiations, particularly the small and medium sized mining companies. The Gillard Government has not consulted with state and territory governments, despite the fact they are already receiving royalties from these mining companies,” Sharman said.

“The minerals industry is already making a huge contribution to the budget. In the 2010-11 year it is expected to pay up to $23.4 billion in combined company tax and royalties; this is before the Government’s carbon tax and also before the Government’s new MRRT.”

Sharman Stone said “if they are taxed harder, less mineral exploration and development will occur and some may to choose to go elsewhere.”

“Instead of extra taxes, this Government should learn to live within its means. The Minerals Resource Rent Tax is not in the best interest of the Australian public,” Sharman said.