FED:Mining tax sacrifice is old news: Swan

AAP General News (Australia)
02-16-2011
FED:Mining tax sacrifice is old news: Swan

BRISBANE, Feb 16 AAP - Reports that the second draft of the federal government's mining
tax sacrificed $60 billion in revenue over a decade should not surprise anyone, federal
Treasurer Wayne Swan says.

Mr Swan said that when the details of the Mineral Resources Rent Tax (MRRT) were published
last July, the government made it clear it would raise significantly less money than the
first proposal.

"The revenue that flows from the MRRT is still strong," he told reporters in Brisbane
on Wednesday.

Ten-year projections were also subject to many variables, Mr Swan said.

"A 10-year projection is not one that you can necessarily say is holy writ," he said.

"It's highly variable, highly subject to change, effected by a range of factors.

"In the medium term, we have the revenue to achieve the objectives that we've put in
place for the MRRT and that will be achieved as this legislation goes to the parliament
and is passed."

Reports of the cost of the re-jigged mining tax came as BHP Billiton announced a record
Australian corporate half-year profit of more than $10 billion.

Mr Swan said it demonstrated why the government had fought hard for the tax.

"It was pretty clear that we were not going to get the original proposal through, it
was very clear that we needed to design a tax with different features, which did raise
less revenue," he said.

"But what you will see in terms of the future of the resource industry is that it is
very strong, that's why Australia does need a resource rent tax."

AAP gd/tnf/jfm

KEYWORD: MRRT SWAN

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