Mineral Resources Rent Tax
The Minerals Resources Rent Tax (MRRT) was announced on the 2nd of July 2012 after a reassessment of the previously announced Resources Super Profits Tax (RSPT). The MRRT is levied on the profits of Iron Ore and Coal mining operations within Australia at rate of 22.5%. This is applied on the profits of the resource at the Run of Mine pad after prescribed allowances are taken into account. On the 22nd of November 2011 the MRRT was passed through the House and finally through the Senate on the 19th of March 2012.
SACOME has been involved in the discussion during the Policy Transition Group period where the mechanics of the MRRT were discussed at regional conferences in Adelaide and Melbourne, provided comment through submissions to Treasury on the first and second exposure drafts of the legislation, worked with other state mineral chambers and councils on joint submissions, and facilitated discussions between the ATO and industry on compliance burdens.
Through the discussion of the MRRT SACOME has noted two key concerns:
1) The legislation makes no distinction between hematite and magnetite and black and brown coal. However these industries differ in extractive effort and operating methods which place unnecessary burden upon the minerals (i.e. magnetite) that require beneficiation to produce a valuable product.
2) The apparent non-neutrality between emerging miners who begin operations after the 2nd May 2010 valuation threshold and those who have existing operations prior to this threshold. This is especially of concern with South Australia’s re-emerging Iron Ore industry.
MRRT Issues Paper Submission
Minerals Resource Rent Tax: Implementation and Transition Issues Submission to the Policy Transition Group (PTG)
The purpose of this submission is to highlight some of the key issues raised by the membership.
MRRT Draft Legislation 2011
Carbon Tax 2011
SACOME along with its interstate counterparts and the MCA have prepared a Joint Submission in relation to the Carbon Tax policy package and draft legislation.
SACOME acknowledges a price on carbon dioxide emissions is beneficial to drive energy generation to low or zero emission technologies such as gas, geothermal, renewables, and nuclear. The Chamber advocates for a full floating market based price that is in concert with the rest of the world and provides assistance to trade exposed industries, until overseas competitors are on an even footing.
In its current form, the tax has a piecemeal approach to industries with inequities such as the rail and air transport sector paying more for fuel when the road and transport sector will be exempt.
There is assistance for industry sectors, such as steel, but no arrangements to ensure steel making in this country remains competitive after the first three years.
SACOME Climate Change Policy 2010
Clean Energy Future Package - Summary Notes
SACOME Carbon Tax Joint Submission
PwC have also prepared a detailed analysis outlining the features and implications of the Carbon Tax for the mining and energy sectors, with the aim of better preparing companies with the knowledge they need to understand the scheme and how it will effect their business.