Australia

Details

  • Service: Tax, Corporate Tax, Topics, Tax Reform, Resource Taxation
  • Industry: Energy & Natural Resources, Mining, Oil & Gas, Power & Utilities
  • Type: Business and industry issue
  • Date: 14/05/2010

Reform in Focus: Henry Review implications for the ENR sector 

In response to the Henry Review, the government announced a number of resource taxation changes including its intention to introduce a resource super profits tax (RSPT) from 1 July 2012. The proposed RSPT would fund many of the other announced tax measures, such as the reduction in the company tax rate.

The RSPT represents a new era in the taxation of non-renewable natural resources and we are likely to see considerable debate between industry and the government in relation to its introduction

 

Our Reform in Focus Brief provides a detailed analysis of the specific measures.


The tax reforms announced by the government relating to the energy and natural resources (ENR) sector include:
 

  • introduction of the RSPT from 1 July 2012 payable at the rate of 40 percent which will apply to all mining and petroleum projects except those covered by the current petroleum resource rent tax (PRRT) which will be subject to ‘opt in’ arrangements.
  • a resource exploration rebate which will provide a refundable tax offset for eligible exploration expenditure (for activities carried out in Australia) where losses are being incurred. The rebate will extend to geothermal energy exploration expenditure and will apply from 1 July 2011.
  • reduction in the company tax rate to 29 percent from the 2013-14 income year and ultimately to 28 percent from the 2014-15 income year, with a head start for small business companies
  • establishment of a state infrastructure fund to finance infrastructure with a bias towards resource-rich states which face large infrastructure demands.
 

Tax

Our Tax Team assists with corporate tax, transfer pricing, indirect tax, international executive services, R&D incentives, superannuation and more.

Resource Taxation

Resource Taxation
We look at the resource tax landscape which is experiencing significant change with the proposed repeal of the MRRT and amendment of the PRRT.