Australia's coal and iron-ore miners will pay a new mining tax under the legislation, which is expected to pass through parliament by the end of 2011, Treasurer said on Thursday.

The federal government on Thursday announced it will accept all 98 recommendations made by the Minerals Resources Rent Tax (MRRT) policy transition group, headed by Resources Minister Martin Ferguson and former BHP Billiton chairman Don Argus.

The recommendations include 94 recommendations relating to Australia's new resources taxation arrangements and four relating to promoting exploration.

According to Treasurer Wayne Swan, 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.

Proceeds from the reforms would go to a 6.06 billion U.S. dollars Regional Infrastructure Fund, including at least 2 billion U.S. dollars each for Western Australia and Queensland, for road, rail, port and other critical infrastructure, he said, adding that the agreement would deliver certainty, investment and jobs.

Also, all current and future royalties would be credited back to mining companies covered by the planned 30 percent MRRT.

"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," Swan said in a statement released on Thursday.

Swan's announcement could save the big miners hundreds of millions of dollars in future royalty payments in resource states such as Western Australia and Queensland, and silence any new industry campaign against the tax.

Swan said the mining tax draft laws would be released in coming months, and the government expected the legislation to pass through parliament by the end of 2011.

In order to help draft the laws, the government will set up an implementation group, to be chaired by Paul McCullough, from Treasury, and will include other officials from Treasury, Department of Resources, Energy and Tourism and the Australian Taxation Office.

Meanwhile, Resources Minister Martin Ferguson said the agreement on the mining tax was fair and balanced and long overdue.

"We've got a major resources boom in Australia at the moment. This system of taxation at long last potentially gives us the opportunity to ensure that the whole Australian community benefits from this investment pipeline, and it is huge," Ferguson told ABC News on Thursday.

In the past nine months, the mining tax has been at the center of a heated debate. The coalition remains opposed to it, while the Australian Greens and independents, whose vote will be needed to get it through parliament, have yet to agree on the details.