Super profit resources tax – a reasonable thing in super profit times
10 years ago $1 in every $3 of profit was returned to Australians from rental on a non-renewable resource. Today it is $1 in $7.Profit based taxation does work.
The extraordinary mining tax, CairnsBlog.net, Jan McLucas , 12 May 2010, “……”Royalty and excises are based on volume or value and they do not rise with profits. It is important to remember that in 2008-09 the resource sector generated close to $90 billion of superprofits. Superprofits are profits above what a competitive business would normally expect to earn.””In that same year state royalties and Commonwealth excise returned only $12.3 billion to the Australian budgets.
The effect of these proposals is in fact a rebalancing. Ten years ago Australians, through their government, received $1 out of every $3 of profit reaped by the resource sector. Today it is $1 in every $7 of superprofit. Surely that needs some attention.””I will go back to that, although I did explain.
They are profits above what a competitive business would normally expect to return. As I said, 10 years ago $1 in every $3 of profit was returned to Australians from rental on a non-renewable resource. Today it is $1 in $7.Profit based taxation does work. For example, the 40% petroleum resource rent tax has existed for over 20 years,” Jan McLucas said…..
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