Hockey introduces legislation to end MRRT

Treasurer Joe Hockey has introduced legislation to repeal Labor's mining tax and related measures. Source: AAP

TREASURER Joe Hockey has introduced legislation to repeal Labor's mining tax and related measures that were supposed to be funded by the impost.

Mr Hockey said the minerals resource rent tax (MRRT) barely raised any of the revenue it was foreshadowed to do when it was implemented by the former government last year.

"The bill ends a sordid history of poor taxation policy," Mr Hockey told parliament on Wednesday.

"Given that the mining tax has failed to deliver meaningful revenue, the government has had to borrow to pay for the expenditure associated with the mining tax."

Scrapping the mining tax and associated expenditure measure would save the budget $13.4 billion, the treasurer said.

Mr Hockey said only a Labor government could have introduced a tax that raised little money and left the budget worse off.

The MRRT is a 30 per cent impost on the super profits of coal and iron ore producers.

Since it began, the tax has raised a net $400 million, despite Labor's initial forecasts of more than $3.7 billion in its first year.

"The mining tax is a flawed tax," Mr Hockey said.

The legislation also seeks to repeal other measures associated with the MRRT package.

The repeal of the loss carry-back initiative will save $950 million over the forward estimates, reducing the instant asset write-off for small business to $1000 from $6550 will save $2.6 billion, and scrapping the tax deduction for motor vehicles will save $450 million.

"However, it is important to note that in an unrelated initiative, the coalition will assist the automotive industry by not imposing Labor's $1.8 billion fringe benefits tax to salary-sacrificed cars," Mr Hockey said.

Other initiatives to be repealed include the schoolkids bonus, to save $4.5 billion, and the low income superannuation contribution, to save $1.1 billion.

However, the government will be keeping incremental increases in the superannuation guarantee to 12 per cent - although the rises will be delayed for two years, saving $1.6 billion.

The super guarantee rate will remain at 9.25 per cent until June 30, 2016, and then rise to 9.5 per cent on July 1, 2016.

The rate will then increase by half a per cent a year until it reaches 12 per cent on July 1, 2020.

Mr Hockey said the MRRT was a complex and unnecessary tax that had imposed considerable administrative costs on affected resources companies.

Less than 20 individual taxpaying groups had contributed to the net $400 million raised so far.

But about 145 other miners had to submit tax instalment notices despite making no payments.

"Repealing the tax will restore confidence and promote mining activity, which in turn will create jobs and deliver prosperity to the broader community," Mr Hockey said.

"It will send a clear signal that Australia wants to be a premier destination for mining investment, and is once again open for business."

Debate on the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 was adjourned to a later date.

Anda sedang membaca artikel tentang

Hockey introduces legislation to end MRRT

Dengan url

http://tempatistirahatan.blogspot.com/2013/11/hockey-introduces-legislation-to-end.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Hockey introduces legislation to end MRRT

namun jangan lupa untuk meletakkan link

Hockey introduces legislation to end MRRT

sebagai sumbernya