This proposal would introduce a new mining super‐profits tax on minerals projects in Australia that is based on the former minerals resource rent tax but includes some important differences in design. The proposed mining super‐profits tax would be levied at 40 per cent of the net value of mine revenue, minus expenses.

• The mining super‐profits tax would be calculated as follows.
• Revenue of mines would be determined by operating revenue less operating expenses.
• Capital expenditure of mines would be determined as the book value of capital expenditure as at 2017‐18, which would be uplifted at the long‐term bond rate plus 2 per cent.
• Each mine would be assessed individually for the purposes of the tax and there would be no transferability of expenditures between mines owned by the same company.
• Royalty expenses would not be deductible against the proposed mining super‐profits tax.
• Decommissioning costs would not be allowed to be used to offset the proposed mining super‐profits tax. The mining super‐profits tax would be deductible from company tax.

The proposal would start on 1 July 2019.