scrapping the mining tax
SCRAPPING THE MINING TAX- IS IT GOOD OR BAD?
Executive summary
Introduction
The Australian governments mining tax, the mineral resource rent tax (MRRT) has always been under the radar for its ever changing policies. It is very easy to pint out its significant issues, but reforming the tax is quite a major task at hand. All the corporations involved within the mining industry, as well the different corporations in the economy, pay a current income tax rate of 30% on its revenue that they earn by investing in equities or any sort of rent that is earned on the natural resource deposits. Sometimes the shareholders may be expected to pay more personal income tax on its dividends, etc. in addition to this the mining businesses on land have to pay state government royalty which is a percentage on the value of production. This rate ranges from zero for gold mine through to 12.5% for some coal mines, with an overall average of roughly about 8%. As a result of such increase in mining taxes, there has been a major impact on jobs and investments opportunities in the mining sector. For this very reason, the newly elected government has vouched to scrap the mining tax along with repealing the carbon tax.
What exactly is mining tax? (Facts)
The mining tax or minerals resource tax (MRRT) is tax that is imposed on the super profits that is obtained from the usage of natural resources i.e. coal and iron ore in Australia. It was formerly known as Resource Super Profit Tax (RSPT). MRRT is applicable to the following natural resources:
Iron ore
Coal
Anything that is produced by the in-situ consumption ( process involving drilling hole through the ore and implementing explosives to create pathways. This is used to derive mostly uranium or copper) Coal seam gas that is extracted as a mandatory step or incident that occurs while extracting coal from a particular coal mine.[1]
MRRT came into force on 1st July 21012, and was applied to all new and existing coal and iron
Executive summary
Introduction
The Australian governments mining tax, the mineral resource rent tax (MRRT) has always been under the radar for its ever changing policies. It is very easy to pint out its significant issues, but reforming the tax is quite a major task at hand. All the corporations involved within the mining industry, as well the different corporations in the economy, pay a current income tax rate of 30% on its revenue that they earn by investing in equities or any sort of rent that is earned on the natural resource deposits. Sometimes the shareholders may be expected to pay more personal income tax on its dividends, etc. in addition to this the mining businesses on land have to pay state government royalty which is a percentage on the value of production. This rate ranges from zero for gold mine through to 12.5% for some coal mines, with an overall average of roughly about 8%. As a result of such increase in mining taxes, there has been a major impact on jobs and investments opportunities in the mining sector. For this very reason, the newly elected government has vouched to scrap the mining tax along with repealing the carbon tax.
What exactly is mining tax? (Facts)
The mining tax or minerals resource tax (MRRT) is tax that is imposed on the super profits that is obtained from the usage of natural resources i.e. coal and iron ore in Australia. It was formerly known as Resource Super Profit Tax (RSPT). MRRT is applicable to the following natural resources:
Iron ore
Coal
Anything that is produced by the in-situ consumption ( process involving drilling hole through the ore and implementing explosives to create pathways. This is used to derive mostly uranium or copper) Coal seam gas that is extracted as a mandatory step or incident that occurs while extracting coal from a particular coal mine.[1]
MRRT came into force on 1st July 21012, and was applied to all new and existing coal and iron