​Mining tax fails to produce substantial revenue

The mining tax has generated $600 000 for the June quarter, falling welling short of the $150 million originally forecast.

The revenue generated in the latest instalment represents “just one half of one per cent” of this proposed figure, according to Federal treasurer Joe Hockey.

His comments come on the back off the Abbott Government’s continued push to abolish the Mineral Resources Rent Tax, after its failure to pass the senate earlier this year.

The Liberal party election promise to repeal both the MRRT and the Carbon tax is proving difficult to keep, with the risk of a double dissolution election looming if the senate doesn’t pass the repeal legislation a second time.

The second reading of the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 in March showed strong opposition to the repeal from the Labor Party and the Greens.

And while it was slated to come up again after the abolishing of the Carbon Tax and passed the Senate, it failed to be abolished after a number of parties and senators fought to keep the programs that it funded in place.

“It continues to defy logic that Labor, under the leadership of Bill Shorten, would continue to support a tax which has raised next to no revenue but is linked to spending of $17 billion over the next four years alone,” Hockey stated on the back of the release of official figures.

He explained the tax’s failure in producing its proposed revenue, stating Kevin Rudd’s original Resources Super Profits Tax (RSPT) was estimated to raise $49.5 billion from the 2012/13 to 2016/17 period, Julia Gillard’s watered down MRRT was set to raise around $26.5 billion over the same period, yet the current government has forecast that it will only raise $300 million in total over the same period.

“The mining tax has worsened the Budget’s position, with Labor having locked in more than $17 billion of spending. The expected net revenue of $300 million is just 2 per cent of the total expenditure linked to the mining tax,” Hockey added.

His comments come as mining magnate Gina Rinehart speaks out in favour of its scrapping.

She stated that the mining tax is harming Australia’s ability to complete internationally, and not about her bank balance, according to the Sydney Morning Herald.

"People are not going to buy products because they like Australians, forget it," Ms Rinehart said.

"They are only going to buy the products if we remain commercially competitive, cost competitive.

"It's not about making Gina richer or anything stupid and short sighted like that, it's about making our country sustainable in the world markets.

The battle for the abolition of the mining tax continues.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.