Queensland Government Comes Out Against MRRT

IRJ -- July 9 -- Fortescue Metals Group is to be joined in its High Court challenge opposing the controversial MRRT by Queensland, an Australian state rich in minerals.

The state government announced that it would be joining forces with the miner in the legal tussle against the minerals resource rent tax, which came into effect on July 1.

Queensland’s Attorney-General Jarrod Bleijie spoke out yesterday, framing the tax as a state’s rights issue.

"Taxes must be imposed equally and it can be argued the MRRT is calculated in such a way that it discriminates between states. This is a battle that has to happen because there is the potential the MRRT is constitutionally invalid.

"By intervening in the litigation currently on foot, Queensland will have the opportunity to make submissions to the High Court on the constitutional validity of the MRRT, without mounting their own High Court challenge," he said.

The tax has been forecast to raise $13.4 billion over the next four years.