SA Mines and Energy Journal : August-Sept 2010
JUNE/JULY 2010 SA MINES & ENERGY JOURNAL 14 FEATURE project, which many believe was threatened by the RSPT, appears to have escaped the new tax scheme because its commodities would be exempt from the MRRT. However, the project was to be funded from profits derived from other BHP projects, which will be taxed under the new regime. How this ultimately affects the Olympic Dam expansion remains to be seen. PricewaterhouseCoopers has identified infrastructure and exploration incentives as important to the development of mining in SA. A punishing aspect of the new tax package for our state is the abandonment of the proposed Resources Exploration Rebate, Mr Bryant said. Mr Kuchel agrees, but says the RER did not hit the mark. Encouraging exploration is vital if Australia is to continue finding enough ore bodies to maintain its level of commodity exports. At the last election, the current government promised the industry a flow-through shares (FTS) scheme, and SACOME continues to lobby for the introduction of such a scheme to encourage investment The really big taxes are aimed at the west and the coal boys in Queensland Minotaur chairman Derek Carter. The oil and gas industries will be covered by the existing Petroleum Resources Rent Tax.