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Petroleum and mineral resource rent taxes: could these taxation principles have a wider application?

Citation

McLaren, J, Petroleum and mineral resource rent taxes: could these taxation principles have a wider application?, Macquarie Law Journal, 10 pp. 43-58. ISSN 1445-386X (2012) [Refereed Article]

Official URL: https://www.mq.edu.au/about/about-the-university/f...

Abstract

The Australian Government introduced a Petroleum Resource Rent Tax (PRRT) on offshore oil and gas deposits in 1984 and since then it has raised in excess of an additional $1 billion a year in revenue over and above the normal company tax on income. The Australian Government has introduced a Mineral Resource Rent Tax (MRRT) on iron ore, coal and gas from coal seams effective from 1 July 2012. The MRRT has been met with criticism from certain mining companies and noted economists. However, Australia currently has a budget deficit and an MRRT is being viewed by the government as a possible solution to balancing the budget. A Resource Rent Tax (RRT) has been used by a number of countries such as the United Kingdom and Norway to increase government revenue from their ‘North Sea’ oil reserves. It would appear that this type of tax has a number of desirable attributes, especially in relation to efficiency. Is it now time for governments to consider a wider application of a rent tax to other industries and resources? A ‘rent tax’ being a tax on land is now an accepted form of taxation in many western economies such as Australia, New Zealand and the United Kingdom. There are a number of businesses such as the airline industry, the fishing industry, the Australian funeral industry and the timber industry that generate an economic rent due to their dominance in a particular business sector. This paper examines a number of those industries and contends that, due to the super profits being generated by these businesses, governments should consider the imposition of a rent tax.

Item Details

Item Type:Refereed Article
Keywords:Petroleum and mineral resource taxes
Research Division:Law and Legal Studies
Research Group:Law
Research Field:Taxation Law
Objective Division:Law, Politics and Community Services
Objective Group:Community Service (excl. Work)
Objective Field:Ability and Disability
UTAS Author:McLaren, J (Dr John McLaren)
ID Code:128599
Year Published:2012
Deposited By:TSBE
Deposited On:2018-10-01
Last Modified:2018-11-29
Downloads:0

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