Commonwealth State Finances News
Published July 2010
On 2 July 2010 the Commonwealth Government announced that it was replacing its proposed Resource Super Profits Tax with revised resource tax arrangements. A Mineral Resources Rent Tax (MRRT) will apply to iron ore and coal mining at a rate of 30 per cent (with a 25 per cent extraction allowance), and the existing Petroleum Resource Rent Tax (PRRT) will be extended to all oil and gas projects.
The Department of Treasury and Finance has estimated that about 60-65 per cent of the additional revenue raised by these taxes will come from Western Australian projects. Treasury officials appeared before the Senate Select Committee on Fuel and Energy on 13 July 2010, including to answer questions about this estimate. A broader analysis of the tax regime was also submitted.
On the basis of this estimate, the Commonwealth's proposals are projected to add about $3 billion in 2013-14 to the net contribution that Western Australia makes to the Commonwealth Budget.