Mining tax forecast to bring higher revenue

The federal government’s mining tax is expected to bring higher revenue flows when major miners submit their March-quarter receipts over the next few days.

The forecast comes as the commodities under the tax began recovering in the past three months compared to the December and September quarters.

The SMH reported that while the complicated tax system makes it tough to predict, higher prices for iron ore and coal gave the best indication the tax will generate more than the $126 million raised in the first six months.

The average iron ore price in the last three months increased by 23% to $US148 a tonne. Coking coal prices also rose by 7% in the March period, compared to the December quarter.

Revenue will still fall short of the Treasury forecast of $2 billion in receipts. A Senate inquiry about the tax will question the Treasury and Australian Tax Office officials on Wednesday to examine the gap between forecast revenues and receipts.

The Greens had called for mining loopholes to be closed earlier this year, which allowed mining companies to deduct the market value of existing assets over many years instead of subtracting the book value over five years.

Image: The Sydney Morning Herald

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