Joint Media Release from Joe Hockey and Mathias Cormann:
Labor’s ongoing secrecy on how much or how little its disastrous mining tax has actually raised must stop.
Australians deserve to know the facts about Julia Gillard and Wayne Swan’s personally negotiated mining tax.
Wayne Swan should immediately clarify how much or how little the MRRT has raised since 1 July 2012.
The Coalition has always questioned the credibility of Wayne Swan’s mining tax revenue estimates.
For two years before the MRRT came into effect, when we raised serious doubts about his mining tax revenue estimates, Wayne Swan steadfastly refused to provide any information about the commodity price and production volume assumptions he used.
He clearly had something to hide. His figures did not stack up then and they do not stack up now.
To facilitate passage of the MRRT legislation through the Senate the Prime Minister promised monthly updates of the revenue it had collected.
More than six months later there is still no official update on how much or how little the MRRT has raised.
We do know though that the ATO has spent more than $50 million on MRRT administration so far and that the mining industry had to spend millions on MRRT compliance to prove they don’t have to pay it.
There is now nowhere left for Wayne Swan to hide.
The mining tax he and the Prime Minister designed with the three biggest miners is a failure on all fronts.
It is more complex, more inefficient, more costly to administer and more costly to comply with than the previous arrangements.
It provided a direct incentive to State governments to increase their royalties on iron ore or coal, yet it doesn’t raise any revenue from the three biggest miners who helped design it when Labor had already spent all of the money they thought it would raise and more.
Labor should cut its losses and scrap its disastrous mining tax.
If Labor won’t, then a future Coalition government will.
14 January 2013