High Court gives Fortescue nod to challenge mining tax
Tuesday 6 November 2012 @ 11.26 a.m. | Taxation
The federal government faces a fresh threat to its plan to return the budget to surplus
after the High Court agreed on Monday to hear a challenge to the mining tax by the
minerals boss Andrew Forrest.
Following a directions hearing, the Chief Justice, Robert French, ruled there be a
hearing before the full bench of the High Court for three days in March.
Mr Forrest's company, Fortescue Metals Group, argues the tax is unconstitutional.
If Fortescue is successful, the government faces having a $9 billion hole blown in
its budget over four years and $2 billion this financial year.
These were the revenue forecasts for the minerals resources rent tax contained in the recent midyear budget update. Despite the mining tax, which began on July 1, making next to no revenue in its first three months of operation, the government is adhering to those revenue forecasts.
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