Mining tax passed by upper house
The Mineral Resources Rent Tax (MRRT) Bill 2011 was finally passed by the Senate or upper house of the Australian parliament yesterday following a controversial passage through the two houses.
The tax must now be signed by th Governor-General to gain Royal Assent before coming in to force on 1st July 2012.
The tax will mean that coal and iron ore producers will pay a 30% tax on extraordinary profits when those profits rise above $75 million. The tax is expected to raise around $11 billion in the first three years.
Opposition leader, Tony Abbott, has said that he would repeal the act when in government.
Rio Tinto, BHP and Xstrata are the three big players in the mining industry and are less likely to be affected than the middle tier companies.