MRRT negotiations hit a snag

drsmith said:

http://www.abc.net.au/news/stories/2010/10/20/3043016.htm

To perserve it's expected revenue stream, the Federal Government could try stopping state governments increasing royalty rates as an alternative.

It will be interesting to see how this plays out.

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joea said:

The report out today on the revised mining tax gives a thumbs up to integrity of the miners and government offical who have supported the original wording on the agreement.
There is a way to go but things are looking better for the nation.

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Under the current plan, iron ore and coal miners who passed the $50 million MRRT threshold would be hit with the tax.

The Association of Mining and Exploration Companies, which represents small and mid-tier miners, would like to see that threshold increased to $500 million. Wilkie has not yet specified a figure.

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In the eyes of many tax accountants it is near impossible to get a read on how much the likes of BHP Billiton, Rio Tinto and Xstrata will pay in MRRT over the next 10 years.

Meanwhile there are suggestions that Swan gave Treasury a task to fix the problem this week but it is hard to see how any serious tinkering with the legislation will meet with the approval of the large mining companies.

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The coal and iron ore price falls last August and September were largely taken into account when Treasury reviewed the budget outlook in October last year, but revenue has been reduced to almost nothing by much larger than expected mining tax deductions.

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drsmith said:

Labor really should be reduced to 10 years of hard chook raffles.



http://www.theaustralian.com.au/nat...ates-write-downs/story-fn59nsif-1226574976212

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drsmith said:

The MRRT is no more.

The senate has passed its repeal.

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