Inefficient MRRT Must Go

IN THE LOBBY: The Chamber of Minerals and Energy of Western Australia (CME) has welcomed reports the Australian Labor Party is re-examining its support for the Minerals Resource Rent Tax (MRRT).

In a release, CME chief executive Reg Howard-Smith said he was pleased that some within the Federal Opposition are taking a step back to reflect on the tax’s introduction and to acknowledge the concerns bodies such as the CME have raised in respect to Australia’s international competiveness.

“The MRRT has added a significant compliance and regulatory burden to industry due to the complex administrative requirements,” Howard-Smith said.

“CME has consistently expressed concerns the MRRT is administratively onerous and costly as well as ineffective, falling significantly short of delivering the genuine tax reform needed to ensure Australia’s ongoing international competitiveness.”

In its release the CME reiterated its view on the tax, saying it has always maintained a strong preference for retention of the current state royalty regime, administered by the State Government and with revenues flowing to the state in preference to federally imposed alternatives.

CME said State Governments were primarily responsible for resources project approvals and the provision of non-privately owned infrastructure which enable development of mining opportunities.

“A state-based royalty regime is best placed to ensure revenue and infrastructure investment is returned to the communities from where our mineral wealth is extracted,” Howard-Smith said.

The CME stressed the importance of reducing the cost of doing business and strengthening the nation’s international competitiveness as key priorities for the resources sector.

To that end, it called for an end to the MRRT, declaring its abolition to be critical.

“The benefits of the resources sector to the WA community are pretty clear,” Howard-Smith continued.

“However, we need to recognise and address the cost challenges faced by industry, if we are to continue to deliver ongoing prosperity to the community.”