A joint statement by Industry Minister Ian Macfarlane and Finance Minister Mathias Cormann outlined a proposal to abolish the MRRT from July 1, 2014 through the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013.

"The repeal of the MRRT package contributes more than $13 billion of savings to the budget's bottom line on an underlying cash basis over the forward estimates," the statement said.

"The former government linked a number of spending measures to the failed MRRT. These came at a significant cost to the budget, to the point where the government is borrowing money to pay for these commitments."

The ministers emphasised that the bill to end the MRRT would honour spending commitments linked to the tax including the increase in compulsory superannuation from 9% to 12%.

The move was agued with familiar industry rhetoric relating to how the MRRT imposed high compliance costs on one of the country's most important sectors, while damaging business confidence critical to future investment in jobs.

The draft bill notes that the MRRT imposed a significant regulatory and compliance burden on the iron ore and coal mining industries (subject to the relevant state royalty arrangements), which was exacerbated by its complex design.

"The MRRT did not replace state royalties as originally envisaged by the Australia's future tax system review but instead imposed an additional layer of taxation," the exposure draft explanatory memorandum said.

"The revenue expected to be raised by the MRRT has been progressively revised down since its announcement, in part because the states increased their royalties, which are credited against MRRT.

"Repealing the MRRT restores confidence and promotes activity in the mining industry, allowing it to thrive, create jobs and contribute to the prosperity of all Australians."

Interested parties are invited to comment on the draft amendments to the bill via electronic submissions to the Treasury by clicking here.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence.

Closing date for submissions is October 31.