The world’s leading coal exporter Australia passed an “historic reform” which will place a 30% tax on its coal and iron ore mining industry, it was announced this morning.
Wayne Swan, Deputy Prime Minister and Treasurer said the decision made last night by Australia’s Senate “will help spread the benefits of the mining boom to all Australians and strengthen our whole economy.”
Proceeds from the the Minerals Resource Rent Tax (MRRT) will be pumped back into a “major new tax break” for Australia’s 2.7 million small businesses as well as a cut to the company tax rate for all businesses, he said.
The cash is also destined for work on roads, bridges and other infrastructure.
Smaller mining firms are reportedly unhappy with the new law, although Mr Swan says “only super-profitable mining companies will pay the MRRT”.
According to the Australian Coal Association, black coal supplies 54% of Australian households and businesses with electricity.