Intended to apply from 1 July 2012, the resource tax arrangements involve:
- a new Minerals Resource Rent Tax (MRRT) regime
- the extension of the current Petroleum Resource Rent Tax (PRRT) regime to all Australian onshore and offshore oil and gas projects, including the North West Shelf.
The amended resource tax arrangement is estimated to reduce revenue by $1.5 billion compared to the estimates expected from the Resource Super Profits Tax (RSPT). Consequently the following revisions to associated tax reforms have been announced:
- The company tax rate will continue to be cut to 29 percent from 2013-14 but will not be further reduced under current fiscal conditions. The tax rate for small companies will be 29 percent from 2012-13.
- The resource exploration rebate will not be pursued. Resource exploration costs will continue to be deductible in the normal way.