Mining Tax Challenge Dismissed by High Court

A dismissal by the High Court with regards the mining tax validity has been laid out today, setting back the cause that many miners have been fighting for.

Andrew Forrest, the chairman of Fortescue Metals, challenged the Minerals Resource Rent Tax (MMRT) law by saying that its imposition has been an increasing burden for miners who already pay a substantial amount of royalties to the state government, as well as income tax that goes to the federal government.

Mr. Forrest argued that the law was invalid, and that it undermines the right of the state to execute its other functions.

The courts, however, dismissed the charges in a unanimous decision, by saying that the MMRT imposes tax only when profits by miners reach more than $75 million and above after other tax deductions. The court said, “The treatment of state mining royalties by the MRRT Act did not discriminate between states and that the Acts did not give preference to one state over another.”

Lawyers from the federal government also refuted Mr. Forrester’s claims, denying the MMRT did not hamper the state from its functions and other resources.

The Coalition has been pledging for the scrapping of the mining tax law, should its leader, Tony Abbot, is elected. Mr. Abbot said on Adelaide early today that, “The mining tax will be gone as of July 1 next year if you vote for the Coalition.”