MINERALS RESOURCE RENT TAX

This is a breakthrough agreement that serves Australia’s national interest, and restores certainty for the mining industry and the broader economy.
 
Australians are entitled to a fairer share of the nation’s wealth and this agreement will deliver that outcome, while ensuring the mining industry stays strong.
 
The improved reforms take industry concerns into account, focus on the most profitable resources, and offer generous arrangements to promote investment.
 
Key components of the agreement are:
  • iron ore and coal will be subject to a new profits-based Minerals Resource Rent Tax (MRRT) with a headline rate of 30 per cent; 
  • an increase in the uplift rate to the long term government bond rate plus 7 percent.
  • immediate expensing of new investment and removal of the refundability (what was the 40 per cent underwrite of projects by the Government under the original RSPT proposal) that industry told us they didn’t want;
  • small miners with profits below $50 million will not pay MRRT;
  • royalties will be creditable against the MRRT;
  • provision of a 25 per cent extraction allowance that reduces taxable profits; and
  • losses can be transferred to other iron ore and coal projects.
There will also be an extension of the Petroleum Resource Rent Tax (PRRT) regime to cover all onshore and offshore oil, gas and coal seam methane projects at a rate of 40 per cent. 
 
This agreement is a win for hard working families across Australia, for mining communities, for small businesses, and for our national economy
 
To strengthen our economy we’ll invest the proceeds in the super accounts of workers, and a tax cut and less paperwork for small business.
 
We will deliver the following key reforms to strengthen and secure the Australian economy:
  • an increase in super from 9 to 12 per cent for 8.4 million workers;
  • $830 million in superannuation concessions for 3.5 million low-income Australians;
  • $6 billion in new and better roads, rail and ports in mining communities;
  • a cut in the company tax rate to 29 per cent to boost jobs and investment, with a head start on the new rate for small business;
  • an instant tax write off of assets under $5,000 for 2.4 million small businesses;
  • a standard deduction making tax time simpler for up to 8.9 million taxpayers; and
  • a 50 percent savings discount benefiting 5.7 million taxpayers.