$8 Billion Shortfall in Proposed Mining Tax

The proposed mining tax (MRRT) was criticized as being a mere election ploy by opposition finance spokesperson Andrew Robb.

The fresh attack on the MRRT came after global resources intelligence firm Intierra reported that the new tax would raise only $2.5 billion in the first two years rather than the $10.5 billion that the government had forecast.

The report estimates that just 50 companies would actually pay the tax and so the federal government will not be able to raise the kind of money that it said it would. The spokesman for Wayne Swan said that the government stood by its forecasts.

However Andrew Robb said that it was just a political fix to get through the election. He said that with the Greens backing the Gillard government would now widen the tax net to fill that gaping hole in their budget.

The almost $8 billion shortfall was being questioned by opposition treasury spokesman Joe Hockey, who said that the government needs to explain urgently just how it plans to make up the estimated shortfall.

Julia Gillard assured mining companies subject to the MRRT that the rate of the tax will not be increased. The treasury has not given any details about how the tax will meet budget forecasts.

Joel Scanlon

Written by

Joel Scanlon

Joel emigrated to Australia in 1995 and worked for five years in the mining industry as an exploration geotechnician, using GIS mapping and CAD software. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm. After that, he ran a successful business providing web services to businesses along the eastern seaboard of Australia. During this time, he developed and launched News-Medical.Net. Joel has been working with AZoNetwork since the company was founded in 2000.


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