Rudd government proposed a resource super profits tax

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Rudd government proposed a “resource super profits  tax” (RSPT) to apply from 1 July 2012 RSPT would be levied on all non-renewable  resources in Australia at 40% after profits exceeded  the “long term bond rate” (approximately 6%) The proposal was unpopular and contributed to the  replacement of Kevin Rudd with Julia Gillard as  Prime Minister in June 2010
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Foundations of Taxation Law © CCH Australia Limited [¶3.9](c) Minerals resource rent tax Minerals resource rent tax RSPT proposal replaced with a proposal for a  “minerals resource rent tax” (MRRT) to apply from 1  July 2012 MRRT will apply to iron ore and coal projects in  Australia Levied at 30% after profits exceed “long term bond  rate” plus a further 7% Other concessions to mining companies include: 25% extraction allowance, effectively reducing tax  rate to 22.5% (not 30%) 100% immediate write-off for project investments Transfer of MRRT losses between projects
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Foundations of Taxation Law © CCH Australia Limited [¶3.9](d) Other proposed reforms Other proposed reforms Corporate tax rate reduction to 29% PRRT extended to all onshore and offshore oil, gas  and coal seam methane projects Immediate write-offs for small businesses for the cost  of depreciating assets under $5,000  Superannuation reforms, including progressive  increase of SGC rate to 12%
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Foundations of Taxation Law © CCH Australia Limited [¶3.10] 2010 federal election 2010 federal election 2010 federal election resulted in a hung parliament Australia has a minority Labor government This means that the status of its pre-election reform  proposals, including the MRRT, is not certain
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