Australia

Details

  • Service: Tax
  • Industry: Energy & Natural Resources, Mining
  • Type: Business and industry issue
  • Date: 12/06/2013

Tax Insights

KPMG's analysis of tax issues and developments.

William Arudsothy

William Arudsothy
Director, Tax

+61 2 9335 8962

warudsothy@kpmg.com.au

Mining Information – Stamp duty and valuation issues 

by William Arudsothy, Indirect Tax Specialist

The taxation of mining assets and more specifically mining information is a hot topic at the moment.

For capital gains tax purposes, the Government announced measures to include the value of mining information in the principal asset test. On the stamp duty front, New South Wales introduced a Bill which will impose duty on mining information by requiring that the value of such information be added to the value of mining tenements (i.e. land).

 

As is often the case in stamp duty, the treatment of mining information varies from State to State. Western Australia and South Australia have had provisions requiring the value of mining information be attributed to the value of land for many years. However, other States (e.g. Queensland) have not introduced specific measures aimed at mining information.

 

There remain opportunities to reduce the stamp duty cost of a transaction by attributing value to mining information. Unlocking this value involves our stamp duty team working closely with the valuations team to appropriately value mining information for stamp duty purposes.

 

For example, a valuation of mining rights when adjusted for the value of mining information and other business assets based on the cost and time required to reproduce the mining information can produce a significant duty saving on the mining rights.

 

We are currently engaged in negotiations with state revenue offices on a number of matters, with millions of dollars in duty at stake. Involving stamp duty and valuation specialists at an early stage is critical to achieving successful outcomes.

 

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