Posted in | News | Iron Ore | Mining Business

KPMG Says RSPT Will Make Australia Uncompetitive

By Joel ScanlonJun 14 2010

According to data provided by a model produced by KPMG on the mining industry the proposed RSPT from the federal government will make the mining companies in Australia pay 42% higher tax rates than the global average.

This high tax rate would make Australia uncompetitive against its international mining rivals. When the RSPT comes into effect an Australian mining company would pay an average effective tax rate of 54%, while the average effective tax rate would be 38% in the major competitive nations.

The iron ore companies would be the worst hit with a 57% effective tax rate in Australia as compared to the 36% applicable in countries such as Canada, Brazil and China.

KPMG has produced the model and data for the Minerals Council. The analysis includes the impact of the government's proposal to reduce the corporate income tax rate from 30 per cent to 28 per cent.

Mitch Hooke, chief executive of the Minerals Council of Australia said while the 40 per cent rate under the PRRT may be suitable for the oil and gas industry, it would be devastating for mining companies.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

APA
Scanlon, Joel. (2019, March 19). KPMG Says RSPT Will Make Australia Uncompetitive. AZoMining. Retrieved on April 23, 2024 from https://www.azomining.com/News.aspx?newsID=18.
MLA
Scanlon, Joel. "KPMG Says RSPT Will Make Australia Uncompetitive". AZoMining. 23 April 2024. <https://www.azomining.com/News.aspx?newsID=18>.
Chicago
Scanlon, Joel. "KPMG Says RSPT Will Make Australia Uncompetitive". AZoMining. https://www.azomining.com/News.aspx?newsID=18. (accessed April 23, 2024).
Harvard
Scanlon, Joel. 2019. KPMG Says RSPT Will Make Australia Uncompetitive. AZoMining, viewed 23 April 2024, https://www.azomining.com/News.aspx?newsID=18.