Australian Mining Tax Consultations Begin

by Mary Swire, Tax-News.com, Hong Kong

20 September 2010

The Australian government’s Policy Transition Group (PTG) will meet for the first time over two days in Canberra on September 20 and 21.

The PTG is charged with undertaking effective consultations with the mining industry and providing robust advice to the government on the implementation of the mineral resources rent tax (MRRT) reform.

Its terms of reference, which were formulated before the election, is to advise the government on the technical design of the MRRT, and the transition of existing petroleum projects to the petroleum resource rent tax (PRRT) regime, as announced by the government on July 2, 2010.

In developing this advice, the PTG will consult with directly affected companies, relevant government departments and stakeholders on the implementation of the MRRT and the extension of the PRRT, to ensure the new tax arrangements are implemented efficiently and are as consistent with the government’s design principles as possible.

Its recommendations will also have to be consistent with the government’s fiscal strategy as stated in the 2010/11 budget, and any policy deviation from the government’s announcement in July would have to be fully offset within the recommendations in terms of any impact on revenue or costs.

Over the coming weeks, the PTG will be commencing a series of consultations with key stakeholders across Australia. This consultation process will be supported by the release of a draft paper for discussion, and a formal submission process, along with further consultation.

A detailed consultation timeline will be developed and published by September 24.

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