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Mining Tax Grab - How will it pan out?

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everything was humming along nicely then the GOV needs money and commissions some idiot to make a report on where to screw the extra from.
We know the story.

The miners effectively got rid of Rudd - more fool him for not even negotiating the report with them. I can sell it he said. Yes Kev !!

Now maybe the GOV realises that you leave the big machine alone. Its linked to banks, shares, dividends, super funds, salaries, and it works and has supported Australia through tough times.

Some idiot accountant says Oh if we pull the wings off here then it still should be OK. NOT.

Its not over. If the Gov is hell bent on raising taxes then make it a few percent across the board Banks, phone co, mining, casino's so it doesnt upset the status quo.

Better still dont raise the taxes and live within your means like all the rest of us do.

Otherwise we shall all be investing in China and India too. Keep the dollars offshore
 
Looks like China still wont throw away their Kevin 07 badges

http://www.theage.com.au/business/w...-impose-resource-rent-tax-20100708-102c2.html

China moves to impose resource rent tax

CHINA is set to impose a resource tax that will shift revenue from companies to local governments and raise the price of energy.

The tax has been billed as a way of curbing environmental destruction and retaining value from the resource boom in impoverished but minerals-rich western China. ''The central government has already decided to start a trial program in Xinjiang and the scheme will be promoted nationwide based upon those experiences,'' National Development and Reform Commission vice-chairman Du Ying said yesterday.
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Martin Ferguson in an interview on Business Spectator has advised there will be no refundability of royalties with the MRRT and that this was in part how the $1.5bn difference between the RSPT and the MRRT was arrived at.

Alan Kohler: Well Martin, is it fair to say that if you hadn’t had the upgrade to your commodity price forecasts from Treasury last week, you wouldn’t have been able to do a deal?

Martin Ferguson: I think it’s a combination of factors. Firstly there was the upgrade by Treasury, which I must say is built on the back of partly the ABARE revised commodity price figures of about a fortnight ago, but also people shouldn’t forget we actually changed the basis of the proposed tax. For example, we took away refundability of royalties and also took away the guarantee in terms of forty per cent of the total, with respect to the proposed government participation,...........
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http://www.businessspectator.com.au...erguson-pd20100709-76VW3?OpenDocument&src=kgb (registration required)

This is inconsistent with the heads of agreement made with the three big miners last week.

All state and Territory royalties will be creditable against the resources tax liability but not transferable or refundable.
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http://www.asx.com.au/asxpdf/20100702/pdf/31r44kprptssxf.pdf
 
drsmith said:
Martin Ferguson in an interview on Business Spectator has advised there will be no refundability of royalties with the MRRT and that this was in part how the $1.5bn difference between the RSPT and the MRRT was arrived at.


http://www.businessspectator.com.au...erguson-pd20100709-76VW3?OpenDocument&src=kgb (registration required)

This is inconsistent with the heads of agreement made with the three big miners last week.


http://www.asx.com.au/asxpdf/20100702/pdf/31r44kprptssxf.pdf
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There isn't an inconsistency between the two quotes. State royalties will be creditable, but not refundable.

What it is saying is that a credit will be given for state royalties paid but only against resource rent tax payable and not more than the resource rent tax payable. So the credit cannot exceed the resource rent tax assessed. Refunding would imply that the state royalties would be refunded irrespective of the amount of resource rent tax assessed.

However, the agreement document you quoted goes on to say that any royalties not credited against the rent tax can be carried forward and will be uplifted by the LTBR plus 7%.

So the end effect when taken over a longer period would appear on face value to be little different to a complete refund, at least for those companies that consistently make the higher profits that bring them under the MRRT.

The interesting question in my mind is that if they have taken away refundability, then it implies that refundability of royalties was in the previous agreement. So does that mean that previously if a company had paid $x in royalties, but profits just met the previous threshold for super tax (government bond rate) so that the supertax payable was negligeable, they would have been refunded in full the $x in royalties?
 
bellenuit said:
The interesting question in my mind is that if they have taken away refundability, then it implies that refundability of royalties was in the previous agreement. So does that mean that previously if a company had paid $x in royalties, but profits just met the previous threshold for super tax (government bond rate) so that the supertax payable was negligeable, they would have been refunded in full the $x in royalties?
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Wayne Swan's initial media release on the RSPT mentioned the rebating of state royalties, so to make any difference with the MRRT, that must have been the case with the RSPT.

http://ministers.treasury.gov.au/Di...010/028.htm&pageID=003&min=wms&Year=&DocType=

Ie: rebate = credit + refund.
 
The Greens policy on mining profits is a RRT levied at 50%.

Their other ideas on tax reform are increasing the top marginal income tax rate to 50% on incomes over $1 million, removing the fringe benefits tax concession, remove the diesel fuel rebate (except for farmers and fishers), and replace the luxury car tax with a tax based on fuel consumption.

http://greensmps.org.au/content/media-release/greens-priorities-henry-tax-review

Beyond that it's just sniping from the sidelines. A somewhat more substantive tax policy position from them would be nice.
 
Strange that no one has resurrested this thread now that BHP is threatening to walk away from the agreement with the Guvmint on the RSPT ... no wait ... it is not called that anymore now is it??

The government's mining tax is under threat of unravelling with the big miners demanding they be compensated for existing state royalties as well as for all future increases.
Despite agreeing to refund ''all'' royalties to the miners when the deal was crunched before the election, the Prime Minister, Julia Gillard, said yesterday the refund should apply only to existing royalties and increases that had been flagged when the deal was done.

http://www.smh.com.au/national/miners-challenge-gillard-over-tax-20101020-16uct.html

Hahahhahhhah hahaha ahha hahaha ....... another Labor policy FAIL !!!!!!!!!!

OOOOOOOOOOOOPSSSIEESSSSS !! Didn't they need all that money to fund their RIDICULOUS promises of more hospitals and tax breaks and road funding and education and, and, and great big lollipops for everyone to lick? :rolleyes:
 
trainspotter said:
OOOOOOOOOOOOPSSSIEESSSSS !! Didn't they need all that money to fund their RIDICULOUS promises of more hospitals and tax breaks and road funding and education and, and, and great big lollipops for everyone to lick? :rolleyes:
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LOL yeah they were relying on that money to keep the spendathon going, no worries Carbon Tax should help cover it and we can all feel warm and fuzzy knowing we are preventing the end of the world due to climate change :rolleyes:
 
Yesssssss ...... funny isn't it how only 23 million people in Australia can pollute more than 1.5 billion Chinese or 310 million in USA (the worlds biggest polluter) and we need a carbon tax ?????? ROFL ..... Mining Tax?? What mining tax? More about constitutional rights and State Royalties apparently.

The West Australian Government says it will fight any Federal Government moves to block it from increasing its state mining royalties once the new tax agreement is finalised.

http://www.abc.net.au/news/stories/2010/10/22/3045961.htm?section=business

http://www.abc.net.au/news/stories/2010/10/20/3043016.htm

What a joke ! And we actually voted these thickheads into Govt???
Shame Australia ....... Shame.
 
Julia said:
Well, we didn't really.
The Independents put them there amongst their personal vendettas against the National Party.
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Sorry ... should have explained my POV better. Swinging voters flocked to the Greens thinking they would be a viable alternative. Some voters voted on personality (I don't like Abbott mentality) and yet others voted for Labor because they ran a scare campaign based on "Work Choices". These are the thickheads I was referring to.

Hope that clears it up for all and sundry.

Click on this link to get some facts on the mining tax. It is a PDF file and can run as a Power Point as well. A bit of truth in regards to the RSPT (even though it is not called that anymore) different leg action, same dog IMO.

http://www.minerals.org.au/__data/a...truth about the super tax-myths and facts.pdf
 
Colin Barnett's decision to jack up mining royalties during the heat of the RSPT debate is looking like a stroke of political genius for the conservative side.

It's a pity Tony Abbott was not similarly adept in reaching an agreement with mining companies prior to the election. At that time it was all ready clear they were prepared to accept a higher overall tax take as demonstrated by the revised RRT.
 
drsmith said:
Colin Barnett's decision to jack up mining royalties during the heat of the RSPT debate is looking like a stroke of political genius for the conservative side.

It's a pity Tony Abbott was not similarly adept in reaching an agreement with mining companies prior to the election. At that time it was all ready clear they were prepared to accept a higher overall tax take as demonstrated by the revised RRT.
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Mr Abbott was too busy trying to win them over with his declaration that the Coalition would not apply any additional tax.
 
2022 has arrived. Many things have changed but some have not.

With a new Labor government, and a rather turbulent set of economic challenges (Post Covid/ War / inflation/ high debts/ pain at the checkout & bowser), we're in a place where I think the first shots have been fired for a new Resources Super Tax. This discussion was precipitated by the Conservatives in UK hitting the populist panic button
Sean K said:
All coal companies are going to be reporting some significant profits over the next two quarters. Is it too late?
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To which the reply was: is it too good to be true?

The British government said it would use a windfall profits tax on oil and gas companies to help raise funds for direct payments to households, totaling about £15 billion ($27 billion), to ease the country’s cost-of-living crisis.
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and now the Trojan Syndrome by Proxy has been unleashed

Australia needs super profits tax on oil, gas: (Ken) Henry​

The architect of Australia’s scrapped super profits tax says Britain’s decision to tax fossil fuel companies helps households deal with the energy shock.
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Of course, @Sean K made a very valid point about early days /electoral promises
Labor were obviously not going to announce any new taxes during the election but I guess they could increase the MRRT going forward with the support of Teal/Green in the Senate. But, the Greens would probably want to take it a step further and get a guaranteed phase out or prohibition by XX date I imagine. It will take a while for any thoughts of increased taxes to be voiced though as it was such a key point of difference that Liberal were trying to push. So, coal companies probably have some time before their bumper profits start to get confiscated. Maybe that's all factored into their SPs already though.
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It will be interesting. My suspicion is we're being buttered up and such a tax is quite likely.
 
Dona Ferentes said:
2022 has arrived. Many things have changed but some have not.

With a new Labor government, and a rather turbulent set of economic challenges (Post Covid/ War / inflation/ high debts/ pain at the checkout & bowser), we're in a place where I think the first shots have been fired for a new Resources Super Tax. This discussion was precipitated by the Conservatives in UK hitting the populist panic button

To which the reply was: is it too good to be true?


and now the Trojan Syndrome by Proxy has been unleashed

Australia needs super profits tax on oil, gas: (Ken) Henry​



Of course, @Sean K made a very valid point about early days /electoral promises


It will be interesting. My suspicion is we're being buttered up and such a tax is quite likely.
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Well unfortunately for Australian investors including myself I must say that if I were Treasurer it would be a measure that I would be putting to Cabinet.

Particularly as a Tory government in the UK seems to have gotten away with it. And there it is a yearly supertax on windfall profits not to be reviewed until 2025, i.e. 3 years of tax already set in stone.

The Coal companies can certainly afford it here, I'm not too sure about Oil and Gas with the exploration costs and volatility of O and G prices.

gg
 
From today's Australian Financial Review:

Albanese flags additional cost of living measures

Prime Minister Anthony Albanese has ruled out adopting a so-called super profits tax on Oil & Gas producers to cover power price hikes as he flags additional measures to help ease cost of living pain.

Albanese has told ABC AM he’s not tempted to follow the UK and adopt a similar measure in Australia.
 
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