Coal and iron ore miners will pay a new resources tax to fund major infrastructure under laws to go to federal parliament by the end of the year.

Treasurer Mr Wayne Swan said the government had accepted all 98 recommendations of a review into its controversial minerals resource rent tax.

Mr Swan said 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 told reporters in Canberra that "In the coming months, we will release draft legislation. That will open that legislation up for another round of consultation before it goes to the parliament at the end of the year."

Mr Swan said all current and future royalties would be credited back to mining companies covered by the MRRT.

He added that "We agree that the mineral resource rent tax is a more efficient way to provide Australians with a return on their mineral wealth and that we shouldn't give a green light to the states to increase their royalties.”

The resource tax recommendations would 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.

(Sourced from AAP)