Queensland Govt Stands Up For Taxpayers: joins High Court battle against mining tax

We have written extensively on the damage that the "supertax" on the mining industry will do to our economy, and how it is policy madness to tax our most successful industry into oblivion.

Today, some good news! The Australian reports that the Queensland Government is joining a legal challenge before the High Court against the tax:

As Premier Campbell Newman and Julia Gillard prepared to meet today in Brisbane, the state government announced it would join the legal battle launched by Andrew Forrest's Fortescue Metals Group last month against the tax, which is forecast to raise $13.4 billion over the next four years.

The Liberal National Party government has also raised concerns with the tax office that the minerals resource rent tax - levied at 30 per cent on the super profits from iron ore and coal - could be applied to state-owned electricity generators that mine coal supplies and are already being hit by the new carbon tax.

Western Australia's Liberal Premier Colin Barnett has said his government would not join the action. But Queensland Attorney-General Jarrod Bleijie said yesterday crown law advice supported his state's intervention in the century-old debate over state-commonwealth rights...

"Taxes must be imposed equally and it can be argued the MRRT is calculated in such a way that it discriminates between states. This is a battle that has to happen because there is the potential the MRRT is constitutionally invalid.

"Like the carbon tax, the MRRT is being used by the federal government to revenue raise. Queensland should not have to pay the price for Labor's financial mismanagement."

It is very disappointing that the Western Australian government has chosen not to follow suit, but in the meantime, we wish the very best for the challenge and hope that justice shall prevail! 

UPDATE: It would seem that although the WA government will not be joining the suit, they will still appear and intervene to present their opposition to it. 

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