Published on 01 Aug 13
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
The value of mining information has direct stamp duty or capital gains tax implications for what are commonly known as “land rich” cases. In the 2013 Budget, it was announced that mining information and goodwill are to be included as part of the value of mining rights for income tax purposes. Whether the states will
mirror these changes in stamp duty legislation remains to be seen. This article therefore focuses on the pre-2013 Budget legislative position and the state stamp duty position. It is pointed out that the appropriate measure of value for mining information in land rich cases should be its market value, as classically defined in Spencer v The Commonwealth. In practice, however, assessing the market value of mining information is technically complex, highly fact-driven, and case-specific.
This article therefore provides a conceptual framework to deal with these challenges, which have not hitherto been subject to adequate discussion.