Wednesday, 27 February 2013 09:17
A Senate inquiry will examine to what extent the design of the Federal Government's mining tax has contributed to a substantial shortfall in forecast revenue.
The Australian Greens successfully referred the Gillard government's minerals resource rent tax (MRRT) to an inquiry by the Senate's economics committee.
The committee has being asked to report back on 6 May, a week before the Federal Budget is handed down.
The inquiry will examine the design of the tax and the extent to which it is responsible for the "mismatch between actual revenue and revenue projections".
In the first six months of its operation the MRRT has delivered just $126 million to government coffers against a full-year forecast of $2 billion.
The committee also will look at the design process and the extent of involvement by Treasury and mining companies.
The MRRT evolved from negotiations Prime Minister Julia Gillard and Treasurer Wayne Swan had with the three big miners BHP Billiton, Rio Tinto and Xstrata.
The terms of reference also include budget implications and how much the government took into account the views of the iron ore and coal mining industry when designing the tax.
The Senate rejected a Greens push to examine how the mining tax could be strengthened to pay for education and disability reforms.
Greens leader Christine Milne said the inquiry was a "win for transparency".
Pic: Greens leader Christine Milne.
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