In joint media release No 2010/055, issued 2 July 2010, the Prime Minister, Julia Gillard, the Minister for Resources and Energy, Martin Ferguson, and the Treasurer, Wayne Swan, announced an agreement on "improved" resource tax arrangements that they said addresses the concerns of the resource industry.
The resource taxation changes focus on the most profitable resources (iron ore, coal, oil and gas), raise the uplift factor for tax losses, remove refundability and offer "generous" depreciation arrangements to promote new investment. The profits-based taxation reforms will apply from 1 July 2012.
The resource tax reforms involve:
- a renamed Minerals Resource Rent Tax (MRRT) regime applying to iron ore and coal in Australia; and
- extending the current Petroleum Resource Rent Tax (PRRT) regime to all Australian onshore and offshore oil and gas projects, including the North West Shelf.
The MRRT will apply at the rate of 30%.
The reduced revenue makes necessary the following revisions to the associated reforms:
- The company tax rate will continue to be cut to 29% from 2013-14 but will not be further reduced under current fiscal conditions. Small companies will benefit from an early cut to the company tax rate to 29% from 2012-13.
- The resource exploration rebate will not be pursued. Resource exploration costs will continue to be deductible in the normal way.
In media release No 2010/148, issued 2 July 2010, the Assistant Treasurer, Senator Nick Sherry, confirmed that a result of the agreement, the standard work expenses deduction for tax time of $500 from July 2012, rising to $1,000 in July 2013, would proceed.
In media release No 2010/082, issued 2 July 2010, the Minister for Financial Services, Superannuation and Corporate Law and Minister for Human Services,Chris Bowen, confirmed that the Government's superannuation reforms, including the 12% Superannuation Guarantee increase, would proceed.