Resource Rent Tax deal finalised

[Jovial Monk]

Well the negotiations have concluded and are too fucking generous to the miners IMHO:

Gillard seals mining tax deal

The Government has made major concessions to the mining industry in a redesign of the resources super profits tax announced by Prime Minister Julia Gillard this morning.

Iron ore and coal will now be subject to a new tax at a rate of 30 per cent instead of the originally announced 40 per cent.

And the tax will kick in at the Government bond rate plus 7 per cent, which would be at around 12 per cent.

"The new arrangements also recognise the preference of industry for more generous recognition of past investment, through a credit that recognises the market value of that investment written down over a period of up to 25 years," Ms Gillard said in a statement.

I don't know how much revenue will now be raised by the tax or what happens to royalties, I guess they no longer get rebated (RRT now only applies to iron ore and coal) which destroys one of the efficiencies of the tax. The tax will now only raise $10.5Bn annually so what spending will be cut? ACCI is whinging that the 2% cut to company taxes should still go ahead—why didn't they speak up about this before? From what I see of the deal, the govt and big miners have shafted the smaller miners. Too bad, the smaller miners should have spoken up, they would have benefitted from the rebating of royalties.

Quite disappointed by this and not a good start for PM Gillard. I guess with the hand she inherited from Rudd and the looming election that is as much as she could do.

[Jubial Priest]

The smaller miner got off even better

$50M profit or less- no mining tax

You should lodge you complaint against this by not voting for those fluffy bunnies

[Jovial Monk]

Company tax will only be cut by 1%.

[IQSRLOW]

Ask any small business owner what they thought about 1-2% cut in company tax. It was sweet fuck all

[IQSRLOW]

This is an EPIC backflip among so many backflips it deserves special mention that Julia Gillard spine is now so flexible she can now perform cunnilingus on herself

[Jovial Monk]

Bit more info:

Gillard seals mining tax deal

The Federal Government has agreed major concessions with the mining industry in a redesign of its controversial super profits tax.

The changes, announced by Prime Minister Julia Gillard this morning, include reducing the headline rate of the tax from 40 per cent to 30 per cent.

* Tax renamed the Minerals Resources Rent Tax
* Will only apply to iron ore and coal
* Iron ore and coal will now be subject to a new tax at a rate of 30pc instead of the original 40pc
* Tax will kick in at the government bond rate plus 7 per cent, which would be around 12 per cent
* Oil and coal seam gas to be rolled into the existing Petroleum Resources Rent Tax and taxed at 40pc
* Changes mean the Government loses $1.5 billion of expected revenue

"We've been stuck on this question as a nation for too long," Ms Gillard told a press conference in Canberra this morning.

"Today we're moving forward together... It's also essential we have a stable and a coherent Government and a positive basis for trust, and I believe we have established that this week."

http://www.abc.net.au/news/stories/2010 ... 942840.htm

It isn't mentioned but I guess the 40% rebates on losses and the write off of exploration and development costs have been dropped, another blow to the smaller miners and making the tax much less efficient.

[Jovial Monk]

Apparently Gillard will not review rates in the next term but after 2013 I guess it can be lifted. But it is now just a revenue raising tax when it could have been much more.

[IQSRLOW]

It was always just revenue raising to pay for all their wasteful spending with a backdoor nationalization of the mining industry by socialist retards

[skippy.]

I get the feeling that the rightards are not happy that Labor have struck a deal, it makes Abbott look pretty silly as he said there was no need for a new tax on the industry, even though the industry agreed it was needed, LOL. But then Abbott says there is no need to cut company tax either,no wonder business don't want to see the mad monk in the lodge.

[IQSRLOW]

That's because it's a dogs breakfast of a tax.

What happened to real tax reform? Why the he'll was Ken Henry paid to present a report that Labor has managed to turn into just another money grab