The Super Profit Mining tax - read our analysis implemented in May by Kevin Rudd was changed and received a slight rebrand.
The now "mineral rent tax " is essentially a resumption of normal business activities as the tax rate levied by the government on the projects remains at 29% for the foreseeable future.
According to this article there were no further developments on deductibility of exploration.
However there were changes to the accounting methodology in the following areas:
1) Deductability / recognition of depreciation. Going forward projects will be assessed in the year incurred rather than depreciated.
2) 7% rate of uplift used to derive PV of the projects
3) Use of lower of book or market value accounting
4) 25% extraction allowance to be applied before the tax of a project - a concession to the miners
5) Miners under $50M turnover not subject to the tax
Sounds pretty good. It brings to mind a Q&A interview session with Joe Hockey (Opposition Treasurer) and Lindsay Tanner (Deputy Treasurer) where Labour was vehemently arguing the need for the tax. If we could change this policy on a knife edge - we'd better wait to see that it's implemented before we proceed to breathe a sigh of relief. Second draft looks better for the miners... but we're probably not at the end of this project yet...deduct that!
What's Up Jono www.whatsupjono.com Finance, Breaking News, Charts, Trends, Opinions
No comments:
Post a Comment