Tuesday, 27 November 2012 13:53
Independent MP Rob Oakeshott is throwing his support behind an Australian Greens amendment that would prevent any increase in state royalties being credited back to mining companies through the government's mining tax.
Under the 30 per cent Minerals Resource Rent Tax (MRRT) that started on 1 July, state royalties must be paid back to companies, even when the states increase them.
Mr Oakeshott said he would be seconding a Greens bill when it was brought into the lower house to prevent this $2 billion revenue leakage in the MRRT.
This will assist in securing the revenue base and "allow for sensible decisions to be made for the long term over a number of different areas and stops the parliament being asked to make significant cutbacks in areas like education", he told reporters in Canberra.
Deputy Greens Leader Adam Bandt said the MRRT was a weakened version of the one envisioned in the Henry tax review and it hadn't brought in any revenue yet.
"We think this is part of the reason, the requirement to rebate state royalties," Mr Bandt said.
"As budget time gets closer, it is going to become apparent that the revenue base in this country is eroding, and we are going take some steps to secure it and this is a sensible way of doing it."
He said independent MP Tony Windsor also supported the bill.
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