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.