The Australian Government intends to introduce the Resource Super Profits Tax, to commence on 1 July 2012. This is a 40% tax on the realised value of resources deposits.
It was clear that many of the mining executives who attended the Prime Minister's dinner at Lavan Legal on 4 May 2010, along with industry players generally, are concerned that this tax could have an adverse impact on the resources industry, with flow on effects to wider industries, particularly in Western Australia.
Lavan Legal believes that the introduction of any tax of such significance, without proper consultation, may hamper industry confidence.
Given the significance of the tax, Lavan Legal strongly encourages a full and open consultative process.
Lavan Legal believes that all affected parties should participate in the current debate and argue for a wider consultative process. Lavan Legal will be forming a focus group and making submissions to the Australian Government on the scope of the consultation process, issues relating to the introduction of such a tax and on the design of the tax, assuming the tax is introduced.
We urge anyone who wishes to be part of the process, whether on a confidential basis or otherwise, to contact Lavan Legal partner Tony Chong (Corporate and Tax) on 08 9288 6843 or tony.chong@lavanlegal.com.au.
