An agreement between the Gillard Government and mining giants over the controversial Resources Super Profits Tax (RSPT) has been reached, which will see the mining tax rate slashed.
The details are that the tax will be renamed Minerals Resource Rent Tax, which will apply only to iron ore and coal in Australia, and will be capped at 30% rather than the original 40% proposed.
Oil and gas projects will come under the current Petroleum Resource Rent Tax (PRRT) regime to all Australian onshore and offshore oil and gas projects, including the North West Shelf.
Other commodities will not be included in the new Minerals tax, reducing the number of affected companies from 2,500 to around 320.
The announcement is a major political win for new Prime Minister Julia Gillard as it’s taken her just over a week to resolve a bitter two-month fight with major miners over the proposed resources tax that was introduced by former PM Kevin Rudd.
