ID :
135065
Wed, 07/28/2010 - 23:00
Auther :

Mining tax take 'depends on high prices'



If coal prices fall to levels seen just a few years ago, the federal government
won't get any additional revenue from the commodity under the new mining tax, a
research and consulting firm says.
But some companies will still benefit from a one per cent reduction in the corporate
tax rate, which is expected to be funded by the mineral resources rent tax (MRRT).
If coal prices remained strong, coal miners would pay an additional $7.4 billion or
eight per cent in government take over the first five years of the MRRT, Wood
Mackenzie said in a statement on Wednesday.
"As MRRT is a profit based tax, government revenue will become more sensitive to
price fluctuations," Wood Mackenzie head of coal supply research Gero Farruggio
said.
Mr Farruggio said miners were already battling strong cost inflation and decreasing
productivity.
"Traditionally Australia is viewed as a low cost exporter, but in our 2010 global
thermal coal export cash cost rankings it is well down the table in sixth place," he
said.
"Indonesia dominates the ranking tables with the largest thermal coal production and
lowest average cash cost.
"In contrast to Australia, it has moved to reduce the level of government take from
coal production."
Wood Mackenzie said aspects of the MRRT required clarification including the
definition of market value of existing assets.
Separately, Wood Mackenzie on Monday said China's domestic production of
unconventional gas, particularly shale, would increase significantly by 2030, but it
would still need to import substantial volumes of liquefied natural gas and piped
gas until 2020.



Delete & Prev | Delete & Next

X