- The major mining companies will be limited on refunds they can claim for state royalties under a plan for the federal government to impose new restrictions to shore up revenue from the controversial mining tax.
- The GST review, which looked at the way the tax is distributed among the states, was also asked to examine state resources royalties and is understood to have recommended putting a limit on the credits available under the minerals resource rent tax. Any overhaul of the mining tax could spark a fresh war with the miners, who argue any change would overturn the 2010 agreement that ended a multimillion- dollar campaign against its predecessor – the resource super profits tax.
- The proposed change would mean that if states increase royalties, only a set amount would be refundable to miners such as BHP Billiton, Rio Tinto and Xstrata, which are expected to contribute about 90 per cent of what the mining tax is forecast to raise.
Full article: http://afr.com/p/national/miners_lose_out_on_royalty_refunds_7xeZSdIuA6W8Kwlm9s2RhI
21 Nov 2012 - 16:23 - Equities - Source: Australian Financial Review
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