Miners agree Australian tax
THE AUSTRALIAN government has settled a long-running spat with mining firms over the introduction of a mining super-profits tax.
Prime minister Julia Gillard announced this morning that profits on iron ore and coal mining in the country will be taxed at 30 per cent, down from the 40 per cent mooted by her predecessor Kevin Rudd.
Rent tax for oil and gas resources will be 40 per cent, as part of a proposed law that will take effect from July 2012. The taxation threshold will be at around 12 per cent, up from the five per cent originally planned.
“The new arrangements recognise the preference of industry for more generous recognition of past investment, through a credit that recognises the market value of that investment written down over a period of up to 25 years,” Gillard said.
The reduced levy is the result of two months of brawls between the government and mining giants.
“The proposal represents very significant progress towards a minerals taxation regime that satisfies the industry’s core principles,” said Rio Tinto, BHP and Xstrata in a joint statement.
It has been renamed the Minerals Resource Rent Tax to reflect the changes made since Rudd was ousted.