Posted in | Iron Ore | Mining Business

KPMG Says RSPT Will Make Australia Uncompetitive

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.

Joel Scanlon

Written by

Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, web programming, design, animation, database and networking, software and editing. Joel has been with AZoNetwork since its inception in 2000.

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