ARTICLE · 13 JULY 2010

The Mineral Resources Rent Tax: How it Will Work in Practice

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The Gillard government last week announced that it had reached an agreement about resource tax arrangements with the mining and resources industry.

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By Michael Hansel, Partner; Damian O'Connor, Special Counsel and Julian Wright, Solicitor

The Gillard government last week announced that it had reached an agreement about resource tax arrangements with the mining and resources industry.

The new Mineral Resources Rent Tax (Minerals Tax or MRRT), which will replace the Resources Super Profits Tax (Super Tax or RSPT), will have a smaller impact on the resources industry, as it will be levied at a rate of 30 percent rather than 40 percent, and will only be levied on iron ore and coal projects.

As a trade-off for these concessions to the original Super Tax, the resources exploration rebate (or RER), which was the subject of an earlier HG Alert , will not be enacted into law.

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