The Wire

The Federal Government’s Mining Resources Rent Tax, introduced this year, caused much wailing and gnashing of teeth among the mining sector. The government had hoped to raise 2 billion dollars through the tax this year but the takings for the first quarter have been zero.

The tax was designed under stress and is faulty, says economist Matthew Grudnoff, as it can only return money to the government when commodity prices are very high. Removing some of mining’s tax free breakslike the diesel fuel rebate would return billions, he says.