Government accepts resource tax recommendations
The Federal Government has announced its acceptance of advice and recommendations provided by the Policy Transition Group (PTG) that was formed following the announcement of new resource taxation arrangements.
After consultations with industry, the PTG provided two reports to Government on 21 December 2010, the first making 94 recommendations regarding the technical design of the new Minerals Resource Rent Tax (MRRT) and the extension to the Petroleum Resource Rent Tax (PRRT) and the second making four recommendations on mineral and petroleum exploration.
The Government has accepted all 94 recommendations, and these will form the basis of the design of Australia’s new resource taxation arrangements, as reflected in draft legislation to be released for consultation in the first half of this year.
Recommendations of PTG’s report on Minerals and Petroleum Exploration and its advice to incorporate geothermal exploration into the wider definition of exploration have also been accepted.
In line with PTG recommendations, a Resource Tax Implementation Group will be established, comprising representatives of industry and the tax profession as well as government officials from Treasury, the Australian Taxation Office and the Department of Resources, Energy and Tourism.
Under the new Resource Rent Tax arrangements, which will apply from 1 July 2012:
- a new Minerals Resource Rent Tax (MRRT) regime will apply to the mining of iron ore and coal in Australia, and
the current Petroleum Resource Rent Tax (PRRT) regime will be extended to all Australian onshore and offshore oil and gas projects, including the North West Shelf. This will provide certainty for oil and gas projects and ensure all oil and gas projects are treated equitably.
The PTG reports and membership of the new Resource Tax Implementation Group are available at http://www.futuretax.gov.au