Mining Sector Paying Unfair Share of Tax
Miners have doubled down on calls for Canberra to deliver company tax cuts, releasing a new report claiming the industry is seeing half its profits swallowed up by taxes and charges.
The Minerals Council of Australia's annual tax survey, conducted by Deloitte Access Economics, claims the effective tax rate for the industry edged down slightly to 51 per cent in 2015-16 but remains the second highest in nine years since the survey started.
The effective tax rate is calculated by adding the 30 per cent company tax rate and royalties charged by state governments to extract minerals together. The tax rate peaked at 54 per cent in 2014-15 and eased to 51 per in 2015-16.
The tax rate remains historically high, and has risen by almost 10 percentage points since the survey started in 2007-08. Over that time, the tax rate averaged 45 per cent. In 2010, when the Rudd government proposed its mining tax, the rate was 42 per cent.
Higher royalty rates, which are based on production volumes, and lower profits from a fall in commodity prices, were blamed for the higher tax ratio
How interesting.