Now no one is saying the Commonwealth is a gold digger,
but it clearly isn't messing with no broke diggers. Well at
least that's not the intention of the Mineral Resources and
Rent Tax (MRRT) which since 1 July applies to 30% of the taxable
profit of all new and existing iron ore and coal projects in
Australia. The taxing of companies and private entities is nothing
new so what exactly is Fortescue Metal's High Court challenge
all about?
The Australian Constitution provides that the Parliament
can't make tax laws which would discriminate between States or
parts of States and expressly prohibits federal taxes on State
property.
Fortescue argues that the MRRT offends both of these
restrictions and contravenes the constitutional right of States to
deal with their own assets and property in a way they see fit
(minerals are owned by the Crown until they're dug up).
