Tony Crook (O'Connor, National Party) Share this | Hansard source

by leave—I move amendments (1), (3) and (4) as circulated in my name together:

(1) Clause 4, page 2 (line 9), omit "Extraction factor", substitute "(extraction factor + emerging miner factor)".

(3) Clause 4, page 2 (after line 10), before the definition of extraction factor, insert:

emerging miner factor is:   (a)   where the group production of taxable resources for the miner for a year is less than 10 million tonnes—75%; or   (b)   otherwise—nil.

(4) Clause 4, page 2 (after line 11), after the definition of extraction factor, insert:

group production of taxable resources has the meaning given by section 175-15 of the Minerals Resource Rent Tax Act 2011.

Following lengthy consultations with industry and expert accountants, I seek to amend the MRRT imposition bills so that emerging miners do not pay any MRRT. This is done by creating a special emerging miner MRRT rate. This MRRT rate is determined by an emerging miner factor, which, when added to the existing extraction factor, reduces the MRRT rate to nil.

The emerging miner factor applies to miners where the group production of taxable resources for the miner for the year is less than 10 million tonnes. The government already acknowledges emerging miners to be those with less than 10 million tonnes production in the alternative valuation method, safe harbour provision, division No. 175. Although this relates to valuation methods and not liability, this safe harbour concept has merit to be used as a threshold at which to trigger the MRRT.

The government has confirmed that the $50 million profit threshold has no real policy basis. After industry consultation we have determined that a 10 million tonne per annum safe harbour is a more appropriate trigger to apply economic rent and appropriate demarcation between emerging miners and mature, established miners. This will protect small, emerging miners by reasonably excusing them from the liability under the MRRT. Question put:

Question put.

The House divided.   [01:58]

(The Speaker—Mr Harry Jenkins)

Question negatived.

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