Government accepts mining tax review findings

The federal government has accepted all 98 recommendations of a review into its controversial resources tax.

Treasurer Wayne Swan said in a statement the reforms would boost national savings, cut company taxation, and provide investment in infrastructure, particularly in the mineral-rich states of Western Australia and Queensland.

Mr Swan says all current and future royalties will be credited back to mining companies .. covered by the Mineral Resource Rent Tax.

He says the tax is a more efficient way to provide Australians with a return on their mineral wealth and the states shouldn't be given a green light to increase their royalties.

Mr Swan says the resource tax recommendations will have no net impact on the budget over the forward estimates.

The government will set up an implementation group to help draft the laws including representatives of industry and the tax profession and government officials.

Mr Swan says proceeds from the reforms will go to a six billion dollar Regional Infrastructure Fund .. including at least two billion dollars each for Western Australia and Queensland for road, rail, port and other critical infrastructure.