MRRT has become a revenue grab by Commonwealth

Comments on James Massola "Gillard government's warning to states on mining royalties”, 24/03/2011, http://www.theaustralian.com.au/national-affairs/gillard-governments-warning-to-states-on-mining-royalties/story-fn59niix-1226027467391

The main idea of this tax was to replace the so called inefficient price based royalty regime with a profit based royalty regime. The states have the rights for mineral royalties, therefore the MRRT revenue should belong to states, as opposed to being a monopoly by the Commonwealth.

This whole drama by Swan et al, dressed up as a reform, has been a sham and a tax grab by the Commonwealth from the states.

The Commonwealth has talked about how the states would not have the resources to meet future health spending needs. Judged by this, they are correct, because they choke the states to death by steal their revenue.

It makes any reforms proposed by the Commonwealth in terms of federal relations a subject of cynicism, on the part of the Commonwealth.

Shame, isn’t it?