This has proven to be a very contentious topic with strong opinions for and against the ‘big new tax’ as some politicians like to call it. There has been so much debate through the media which has left most of us scratching our heads wondering what outcome is other than a new Prime Minister.
Firstly the name ‘Resource Super Profits Tax’ has been abolished with good reason. The new name for the tax is the ‘Minerals Resource Rent Tax’ or ‘MRRT’.
As at 11 July 2011 a summary of the MRRT is as follows:
| When will it apply from | 1 July 2012 |
| What will it apply to | Oil, Gas, Iron Ore and Coal |
| Tax effect changes | Higher uplift factors and faster depreciation rather than refundability of unused tax deductions |
| Amount of tax | 30% of the eligible assessable income exceeding the long term government bond rate plus 7% |
Regarding the Petroleum Resource Rent Tax (‘PRRT’):
| Currently | only applies to offshore petroleum projects |
| Proposed | applies to oil, gas, coal seam and methane projects onshore and offshore at a rate of 40% |
But these changes are not final till they become legislation which will no doubt include further debates and changes. Maybe even a new Prme Minister?