The International Resource Journal: Swan having none of new MRRT analysis

Swan having none of new MRRT analysis
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Nuala  Gallagher on 08 November, 2011 11:09:00
 
IRJ –November 8 -Australian Treasurer Wayne Swan has come out fighting
against analysis which suggests that the proposed Mineral Resource Rent Tax
(MRRT) introduced to parliament last week distorts public understanding on the
matter.
Compiled by BDO Accounting and used by mining magnate and MRRT opponent Andrew
Forrest to make the case against the taxation, due to come into effect on July 1
2012, the analysis contains “substantial errors” including
inconsistent basis for assumptions, according to Swan.
“These errors demonstrate that your analysis should in no way be taken as
representative or even indicative of the expected operation of the MRRT,”
the Treasurer wrote.
“I am advised that you have just released revised modelling that attempts
to correct for some of these errors, but on an initial assessment it appears to
still fall well short of being in any way indicative of expected outcomes for
the MRRT, and as a consequence it is distorting the public debate.
“Your analysis overstates the deductions and understates the revenue of
the miners.”
Back and forth between mining executives and Federal authorities has taken place
since former Prime Minister Kevin Rudd introduced the Resource Super Profit Tax
(RSPT) which was later replaced by the MRRT. In brief, the tax requires iron ore
and coal miners making upwards of A$50 million in annual profits to pay a
‘super profits’ charge. Many opponents claim that because it has
been negotiated by the Federal government and a select group of super major
mining houses, it does not represent the entire industry and may have disastrous
consequences for groups that boarder on being eligible to pay up.
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