FED:Govt set for MRRT showdown with states

AAP General News (Australia)
12-21-2010
FED:Govt set for MRRT showdown with states

The federal government is poised for a showdown with the states over mining royalties
.. following a report into its proposed Minerals Resource Rent Tax.

Treasurer WAYNE SWAN says the government would carefully consider the 94 recommendations
made by the MRRT policy transition group before responding to the report early next year.

The report recommends all current and future state and territory royalties be credited
against tax liabilities .. contradicting the government's stance.

The battle lines are expected to be drawn by resource rich mining states including
Western Australia and Queensland .. whose premiers have been vocal about holding on to
their states' royalties rights.

Mr SWAN says he's confident the issues can be worked through with the states.

But Premier ANNA BLIGH says Queensland won't give up the right to set royalties for
its resources.

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KEYWORD: MRRT (CANBERRA)

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