Fortescue Metals boss Andrew Forrest.
Fortescue Metals boss Andrew Forrest. Chris McCormack

High Court reserves its decision on mining tax challenge

A DECISION on Fortescue Metals' High Court challenge to the Federal Government's mining tax has been reserved by the full bench of the court after three days of hearings in Canberra.

The constitutional challenge by Andrew Forrest's Fortescue Metals Group was joined by the Queensland and Western Australian governments.

At the crux of the case was Fortescue's challenge that some states were disadvantaged by the tax due to allowance deductions relating to state royalties, which may be unconstitutional.

But the Commonwealth argued the tax was not unconstitutional as the rate of the tax was applied at the same level, regardless of the physical location of minerals being mined.

The full bench of the Court reserved its decision in the final hearing of the case on Friday.



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