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Whilst there were no mining specific measures in the Federal Budget several announcements will impact mining companies, especially multinationals.
Proposed measures of note for mining companies include:
The Diverted Profits Tax (DPT) follows the UK lead and targets both foreign owned and Australian owned multinationals that have arrangements which shift profit offshore. The proposal significantly shifts the goal posts in favour of the ATO. In summary, the DPT will:
Labor does not support the reduction in the corporate tax rate for larger companies. In addition, whilst it broadly supports a tougher approach on multinational tax avoidance it has its own policies - the centrepiece being a change to the thin capitalisation rules which would curtail the use of related party finance to reduce profits in Australia.
Most of the State and Territory Budgets have now also been handed down. The good news story is NSW who have confirmed a previous announcement to narrow its stamp duty base from 1 July 2016. In particular:
SA still leads the way, however, with its Budget last year announcing a one third cut in the rate of stamp duty on transfers of mining tenements to take effect on 1 July 2016, with stamp duty on mining tenements abolished all together from 1 July 2018.
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