MRRT to Deliver $500 Billion Boost to Australian Workers
Households and small businesses will be big beneficiaries of the Gillard Government’s critical reforms to deliver a fairer return from the nation’s non-renewable resources, boosting the super savings of Australians by $500 billion by 2035.
Legislation for the Minerals Resource Rent Tax is being finalised for introduction to parliament after more than a year of public debate and extensive consultations with industry and other stakeholders.
The MRRT will lock in the benefits of the mining boom for all Australians and help tackle the challenges posed by our patchwork economy, where different sectors are growing at different speeds and many small businesses are doing it tough.
The revenue from the MRRT will:
- Secure a boost to the superannuation of 8.4 million workers, increasing their pool of retirement savings by $500 billion by 2035, according to the Federal Treasury;
- Deliver a special new tax benefit for 2.7 million small businesses and a cut in company tax;
- Fund vital infrastructure to help address capacity constraints, particularly in the nation’s fast-growing mining regions.
Where was the Treasury advice that hypothecation – linking the proceeds of a particular tax to certain expenditures – is rarely a good idea?
Another thought: if there has been no revenue from the MRRT, then there can be no breach of confidentiality when it comes to releasing the gross revenue – zero – that has been received thus far. Bring it on.
Another thought again: If this trumped reason in respect of the disclosure of MRRT revenue is true – in theory, there are some 300 odd companies which could be liable to pay the MRRT – then the government must refuse to release any figures in respect of the PRRT, where there are far fewer companies liable to pay the tax.