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IMF Backs Australian Resources Super Tax

By Joel ScanlonJun 24 2010

Prime Minister Kevin Rudd may have quit making place for Julia Gillard to take over the Labour party leadership, but his proposed Resources Super Profits Tax has received an ally in the International Monetary Fund. The deputy head of the IMF's tax policy division, Philip Daniel said that the IMF staff welcomes the RSPT tax proposal in principle.

In his personal opinion Mr. Philip Daniel felt that the mining industry's protests were not considering other factors such as the government's promise to reimburse miners for 40% of the losses on failed projects through a tax credit.

Mr. Daniel also said that the tax design is such that it would make future changes less likely. However the present royalties regime will need to be changed at a future date as it is not responsive and more vulnerable to unexpected changes.

Mr Daniel was commenting on a paper on the tax by a visiting fellow at the Australian National University, Ben Smith. As per the paper the government proposes to be a ''silent partner'' that will claim 40 per cent of profits but refund 40 per cent of project losses.

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.

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Scanlon, Joel. (2019, March 19). IMF Backs Australian Resources Super Tax. AZoMining. Retrieved on April 24, 2024 from https://www.azomining.com/News.aspx?newsID=59.
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