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Given the fact that Australia has had a ‘Petroleum Resource Rent Tax’ since 1987, why should there be any opposition to a ‘Mineral Resource Rent Tax’?
Citation
McLaren, J and Chabal, P, Given the fact that Australia has had a Petroleum Resource Rent Tax' since 1987, why should there be any opposition to a Mineral Resource Rent Tax'?, Journal of the Australasian Tax Teachers Association, 6, (1) pp. 20-37. ISSN 1832-911X (2011) [Refereed Article]
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Copyright © 2011 Australasian Tax Teachers Association
Official URL: https://www.business.unsw.edu.au/About-Site/School...
Abstract
The Australian Government introduced a resource rent tax on offshore oil and gas
deposits in 1987 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. At the time it was being
introduced a great deal of controversy followed the proposed introduction of the
petroleum resource rent tax (PRRT). On 2 November 2011, the Australian government
introduced the raft of bills into Parliament for the imposition of a Mineral Resource Rent
Tax (MRRT) on profit generated from iron ore, coal and gas from coal seams from 1 July
2012. Onshore oil and gas deposits will now be subject to a rent tax under the new
PRRT regime that was also introduced into Parliament on 2 November 2011. The
proposed MRRT has been met with criticism from certain mining companies, the
Opposition parliamentary parties and noted economists. However, Australia currently
has a budget deficit and a MRRT is being viewed by the government as being a solution
to repaying government debt and to redistribute the burden of tax by reducing the rate
at which companies pay income tax. 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. This paper will address the question raised
above: namely, why is there opposition to a proposed MRRT given the continued
existence of a PRRT in Australia for over 14 years? The paper will also contend that
there are sound philosophical reasons for having this form of taxation and that as a
result of the continued existence of a PRRT in Australia together with the fact that
resource rent taxes have been adopted in many other countries, that the criticism of the
new MRRT is unwarranted.
Item Details
Item Type: | Refereed Article |
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Keywords: | Petroleum Resource Rent tax and Mineral resource rent tax |
Research Division: | Law and Legal Studies |
Research Group: | Commercial law |
Research Field: | Taxation law |
Objective Division: | Law, Politics and Community Services |
Objective Group: | Community services |
Objective Field: | Ability and disability |
UTAS Author: | McLaren, J (Dr John McLaren) |
ID Code: | 128604 |
Year Published: | 2011 |
Deposited By: | TSBE |
Deposited On: | 2018-10-02 |
Last Modified: | 2018-11-26 |
Downloads: | 1 View Download Statistics |
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