Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Hansard source

I thank the honourable senator for his question. The mining tax was an unnecessary and poorly designed tax that burdened the industry with excessive compliance costs. It damaged international investor confidence in Australia, particularly in our resources and energy sector, and it made the industry less internationally competitive. The whole point of the tax was to extract economic rents. It did nothing of the kind. Atlas Iron recently outlined to the Senate economics committee the impact of the mining tax on its operation, noting:

… the introduction of the MRRT substantially delayed the process of marketing our Ridley magnetite project to foreign investors as it created a further layer of cost and uncertainty over such projects which are already considered risky by virtue of their capital requirement.

It was adding to the risk of these major projects. The MRRT added extra complexity administratively—new administrative and compliance burdens.