Better than I thought: MRRT raises $126 million in six months

The Fin is reporting that the MRRT has raised $126 million, which is tad under the original expectation of $1.5 billion ($3 billion over the full financial year).

The 22.5 per cent levy on coal and iron ore profits at companies like BHP Billiton, Rio Tinto and Xstrata has been under fire because of the government’s unwillingness to disclose what it had earned. Treasury in November sliced by a third the four-year forecast to $9.1 billion, including $2 billion in the current fiscal year.

I’m surprised it is this much as the big three, BHP, Xstrata and Rio, apparently paid nothing.

I wonder where all those confidentiality provisions etc have now gone, if the Swandive can release the figures.  Oh yes, he was just stalling because the truth is ugly.

With the PRRT receipts also welcome down, the line of revenue is way down on Treausury’s MYEFO guesses.

Will the rebound in iron ore prices help?  I am told that because there are so many locked in contracts, the jump in the spot price will only have a marginal impact on the tax take.   And coal prices have not rebounded to anywhere the same extent.

And so what happens to all those items that are funded by the mining tax then, including the increase in the SGC?

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60 Responses to Better than I thought: MRRT raises $126 million in six months

  1. ar says:

    Rivers of gold… Swan deserves an apology… or being strung up by his thumbs… take your pick…

  2. stackja says:

    Treasurer Wayne Swan has revealed the mining tax raised just $126 million during its first six months of operation. He says the figure was only provided to him today by the Tax Office, and he is releasing it publicly in the interests of transparency.

    Swan is transparent. Just got figure. Yes, of course.

  3. brinkin says:

    just shows some companies forgot to hire a good accountant.

  4. johninoxley says:

    Swan is transparent,,,,, we can see right through him.

  5. Septimus says:

    He says the figure was only provided to him today by the Tax Office, and he is releasing it publicly in the interests of transparency.

    Perfectly transparent that today is a non-sitting day and it’s Friday. Joe Hockey won’t be able to box his ears until Question Time next Monday and by then it will be old news.

  6. Rabz says:

    8% of which has now been gifted to the comrades at your ALPBC.

    The Goose. What a frigging legend. The Springsteen will be blasting tonight…

  7. Splatacrobat says:

    According to Swan’s accounting methods the $126 million is the GST liability on the (non existant)sum of expected MRRT revenue.

    They couldn’t drive a greasy stick up a dog’s arse this useless lot.

  8. Andrew says:

    Hockey owning Swan and Gillard on the MRRT on ABC24

  9. Louis Hissink says:

    How many of the coal companies are State owned entities ?

  10. The present value (discounting for an average CPI of 2.5%) of his pension (excluding any residual that would flow to his spouse) is therefore just under $9.5 million. It is actually more than this given that the surviving spouse is entitled to receive a pension equal to 5/6 of the main pension.

    – Samuel J estimating Robert McClelland’s payoff package.

    So at the going rate, we could pension off 13 MPs for life with this year’s mining tax. Money well spent …

  11. Oh hang on – and that’s only 6 months of income, so actually we can pension of 26 MPs!

    The day just gets better and better.

  12. Andrew says:

    The Coalition needed to attack Labor’s Superannuation rebate because it is funded by the Mining Tax that is not raising near enough money to cover the expense of the rebate. Ultimately, people are going to be worse off under this rebate because the tax shortfall means more debt which means future taxes.

  13. Andrew says:

    This Government is the worst in history. Pisses me off so much how wasteful and stupid they are.

  14. Ubique says:

    The MRRT is probably costing the mining industry and the Treasury more in compliance and administration costs than the tax is raising. An inefficient tax indeed.

    Never was so much political capital expended for so little return.

  15. Abu Chowdah says:

    They couldn’t drive a greasy stick up a dog’s arse this useless lot.

    What vivid and yet uncannily appropriate metaphor for their incompetence!

  16. Andrew says:

    I read this on twitter:

    At least it’s clear that Wayne Swan has not been taking performance enhancing drugs.

    ROFL!!! 😀

  17. Septimus says:

    The MRRT is probably costing the mining industry and the Treasury more in compliance and administration costs than the tax is raising. An inefficient tax indeed.

    Never was so much political capital expended for so little return.

    Elegant. Wasn’t that how it was described? Elegant?

    AHAHAHAHAHAHA!

  18. JamesK says:

    $1.26 billion or $0.126 billion?

  19. Rabz says:

    The latter – a billion is one thousand million.

    Think of it this way – the ALPBC received $997.4 million in taxpayer dollars in 2011-12, or a tick under one billion.

  20. JamesK says:

    The latter – a billion is one thousand million.

    Think of it this way – the ALPBC received $997.4 million in taxpayer dollars in 2011-12, or a tick under one billion

    Rabz I draw your attention to the first sentence:

    The Fin is reporting that the MRRT has raised $126 million, which is tad under the original expectation of $1.5 billion ($3 billion over the full financial year).

    Did they get $1.26 billion or $126 million ($0.126 billion)?

  21. Rabz says:

    James, I believe Judith was being a tad sarcastic…

  22. Deadman says:

    The latter – a billion is one thousand million.

    Not for me; a billion = a million million.

  23. JamesK says:

    James, I believe Judith was being a tad sarcastic…

    Yes I thought an error or sarcasm but wasn’t sure.

    It wasn’t Judith it was the Fin-Review which seems somewhat more unlikely

  24. Milton Von Smith says:

    I can just see tomorrow’s headline: “Eddie Obeid Does More to ‘Spread the Benefits of the Mining Boom’ than Wayne Swan”.

  25. Andrew says:

    A million millions is 1,000,000,000,000 which is a trillion not a billion. 1 thousand millions is a billion

  26. JamesK says:

    A trillion is a million million

  27. Rabz says:

    A million millions is 1,000,000,000,000 which is a trillion not a billion. 1 thousand millions is a billion

    Oh god, here we go…

    It’s CCC time!

  28. Will says:

    One thousand million (1,000,000,000) is an American billion. One million million (1,000,000,000,000) is a British billion.

  29. JamesK says:

    Ah the ‘tad under’ was Judith not the Fin Rev

  30. Jim Rose says:

    I wonder how much the carbon tax will raise. is it linked to the EU carbon price?

  31. Splatacrobat says:

    One thousand million (1,000,000,000) is an American billion. One million million (1,000,000,000,000) is a British billion.

    So how much is a Gazillion?

  32. Arnost says:

    In European usage, one milliard is 10^9 = 1,000,000,000, and one billion is 10^12 = 1,000,000,000,000

    I suspect that the FX trading colloquialism “yard” for 1Bio Yen etc. stems from it being a milliard [“milli – yard”].

  33. Gab says:

    Larger than a bazillion, Splat.

  34. C.L. says:

    Opposition: Swan an imbecile who must resign…

    The Coalition has described the tax as a “dog’s breakfast” and called on Mr Swan to stand down as Treasurer.

    “If Wayne Swan had any self-respect, he would resign. He is totally incompetent,” shadow treasurer Joe Hockey told reporters in Sydney.

    Figures provided by the Tax Office show it has cost tens of millions of dollars to administer the new tax. Mining companies are reportedly spending a similar amount to comply with the new arrangements.

    Shadow assistant treasurer Mathias Cormann says the tax has been bad for the economy and Mr Swan should take responsibility.

    Any chief financial officer in a publicly listed company that came in 90 per cent below his revenue target on a key measure like this would have to quit his job,” he told ABC News Online.

    “Wayne Swan is personally responsible for this mess and he should seriously consider his position.

    http://www.abc.net.au/news/2013-02-08/mining-tax-details-released/4508632

  35. C.L. says:

    Gillard: MRRT working really well, just as planned.

  36. Tracey says:

    It took Qld’s Channel 10 News 20 minutes to get around to giving this debacle a brief mention.

  37. Tracey says:

    I’m liking Mathias Cormann more and more

  38. hzhousewife says:

    I do hope someone has told all the teachers and the nurses.

  39. Cold-Hands says:

    Does this figure take into account the Royalties paid to the States that were to be reimbursed?

  40. Deadman says:

    A gazillion is 10^1,000,000,000,000 or one followed by a billion* zeroes.

    * a real billion, 10^12.

  41. JamesK says:

    Does this figure take into account the Royalties paid to the States that were to be reimbursed?

    Good point.

    The MRRT is supposed to fund the states Royalties as well.

    I’d love to see Queensland and WA increase Royalties now.

    i’d love to see queensland and WA increase the

  42. Splatacrobat says:

    $126 Mil would hardly cover compliance costs and Treasury/Tax dept wages to administer the legislation.

  43. Mark says:

    It should inconceivable that these morons could take so much heat and so much political capital on a tax that raises nothing.

    But it isn’t. And that is sad. And funny. God bless them.

  44. Septimus says:

    One thousand million (1,000,000,000) is an American billion. One million million (1,000,000,000,000) is a British billion.
    So how much is a Gazillion?

    How much would you like it to be? 😉

  45. tbh says:

    I think it’s almost got past the stage of comedy with these turkeys. I feel like I’m laughing at disabled people or something.

    On a more sober note, though, at what point does a guys like Swan look at himself in the mirror and say “I’m kidding myself, I’m no good at this”. Probably never, as I doubt there is a lot of self reflection going on in this government. It’s reduced now to clinging to power by whatever means necessary.

  46. Econocrat says:

    Has Ken Henry still got his unconstitutional $700,000 part time job?

  47. Andrew says:

    Has Ken Henry still got his unconstitutional $700,000 part time job?

    Did Rudd employ him to work in the Treasury?

  48. JamesK says:

    Did Rudd employ him to work in the Treasury?

    Costello appointed him to head Treasury.

  49. Cold-Hands says:

    The Greens are planning a Private Members Bill to remove the tax-deductibility of State mining royalties. Oakeshott is all for it, which tells us all we need to know…

  50. entropy says:

    Wayne Swan is the most incompetent treasurer in Australian history,” Shadow Treasurer Joe Hockey said in Sydney today.
    “If Wayne Swan had any self-respect he would resign.

    Hockey is just too disrespectful: to the memory of Jim Cairns.

  51. entropy says:

    It should inconceivable that these morons could take so much heat and so much political capital on a tax that raises nothing.

    I don’t think that word means what you think it means

  52. Econocrat says:

    And let us also all remember that: the RSPT was based on a mere assumption that royalties are inefficient; minerals are actually the property of the States (I know property right are not that in vogue); and States have greater genuine fiscal dilemmas than the Commonwealth.

    Treasury needs to be closed.

  53. . says:

    A more free thinking pube might pepper Treasury spreadsheets with notes such as: “Can openers from 1/07/2012…”

  54. Andrew says:

    Lefties are telling me that this tax is ‘volatile’ and that it is not suppose to raise lots of revenue every year….Oh dear. Excuses, excuses.

  55. Greg says:

    Will someone who has the technology overdub “There will be no carbon tax under a Government I lead” to “There will be no SURPLUS under a Government I lead” and upload to YouTube for our enjoyment?

  56. Entropy says:

    From Janet’s article in today’s Oz

    According to the Treasurer, the paltry revenue from the MRRT is the result of global turmoil, falling commodity prices and the high dollar. The trouble with his analysis is that, if anything, the world economy has stabilised in the past six months; commodity prices, particularly iron ore, have recovered strongly and the dollar has been high for a lot longer than the past six months and would have been factored into the revenue forecasts.

    Actually, that may very well be precisely the issue, not so much incorrect methodology in the model. No doubt to create the heroic forecasts and thus create an overall surplus, the underlying assumptions on commodity prices, the world economy and the value of the dollar were probably even more heroic. Chosen to achieve the desired forecast, if you will.

  57. Entropy says:

    Err, Judith. sorry about that.

  58. Ripper says:

    They would have lost heaps of CGT by chasing people out of mining shares.

  59. Warwick Hughes says:

    For sure they have done way more than $126Mn worth of damage to the mining and mineral exploration industries.

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