BHP Billiton, Rio Tinto and Xstrata as well as the Australian Workers Union (AWU) are pleased with plans to replace the Resource Super Profits Tax with a Mineral Resource Rent Tax (MRRT).
The mining industry is pleased that the new MRRT will not be applied retrospectively, and will only apply to iron ore and coal resources from 1st of July 2010. BHP Billiton, Rio Tinto and Xstrata have agreed to the proposal from Julia Gillard’s Government and believe it represents significant progress towards a minerals taxation regime that satisfies the industry’s core principles.
The companies will continue to work constructively with Government to ensure that the detailed design of minerals taxation maintains the international competitiveness of the Australian resources industry into the future.
The Australian Workers’ Union has welcomed the MRRT as an important step towards tax reform Paul Howes, AWU National Secretary, said today.
“Our membership play a major role in the hard work of the mining industry across Australia and they will want to see that this tax reform has benefits for their communities.” Mr Howes said.
“ We believe in a profits based taxation system for the resources sector, we believe that the sections of industry can return a fairer share of their profits to the Australian people and the announcement today by the Prime Minister and the Treasurer delivers that,” Paul Howes said.
The AWU is relieved that as a part of the changed to the RSPT, that planned changes to the superannuation rate will not be abandoned.
“ We are pleased to see that the Government’s plans to improve our nation’s retirement savings through the increase in the Superannuation Guarantee remains a core part of the Governments reform plan.” Paul Howes said.