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According to the Henry Tax Review, the current system of taxing mining royalties does not adequately collect the community's fair share of wealth from the resources sector.
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| 2. |
The Federal Government has announced that it will be introducing a 40% tax on profits made from the exploitation of Australia's non-renewable resources. The tax is set to apply from July 1, 2012.
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| 3. |
The tax will be calculated on the value of the resources at the taxing point, after deducting all allowable costs incurred to get the resource to the taxing point such as exploration and development costs.
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| 4. |
Companies will be able to claim refundable credits for any state royalty taxes paid to avoid double taxation.
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| 5. |
To encourage miners to keep developing, the Government has further announced that it will introduce a refundable tax offset for companies for any exploration carried out in Australia.
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| 6. |
In addition, the amount of super profits tax paid will be a deductible expense in working out a company's taxable income.
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| 7. |
For more information on the resource super profits tax, visit the Tax Review website at www.futuretax.gov.au
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