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.

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.

This proposal has two components.

Component 1 – Increased salary and wage deductions for small companies

• Component 1 of the proposal would allow companies with annual turnovers under $2 million to claim tax deductions equal to 110 per cent of their total wage and salary expenses. The value of the additional deductions would be uncapped, but would not be carried forward.

Component 2 – Increase the goods and services tax (GST) registration threshold

This proposal has two components.

Component 1 – Increased salary and wage deductions for small companies

• Component 1 of the proposal would allow companies with annual turnovers under $2 million to claim tax deductions equal to 110 per cent of their total wage and salary expenses. The value of the additional deductions would be uncapped, but would not be carried forward.

Component 2 – Increase the goods and services tax (GST) registration threshold

The proposal would apply a 30 per cent company tax rate to companies with a turnover of more than
$10 million per annum.

The company tax rate would continue to phase down to 25 per cent as per the current legislated
schedule for companies with a turnover of less than $10 million per annum.

The proposal would commence from the 2019‐20 income year.

This proposal would replace the existing petroleum resource rent tax (PRRT) method of uplifting
excess expenditure to future years, with the following two treatments.

Component 1: Supporting a global 15% minimum tax

Implement the OECD’s Global Two Pillar plan for a global 15% minimum effective tax rate on multinationals and for the taxes on multinational profits to better reflect where products and services are sold.

Component 2: Limiting debt related deductions by multinationals

Component 1: Supporting a global 15% minimum tax

Implement the OECD’s Global Two Pillar plan for a global 15% minimum effective tax rate on multinationals and for the taxes on multinational profits to better reflect where products and services are sold.

Component 2: Limiting debt related deductions by multinationals

Component 1: Supporting a global 15% minimum tax

Implement the OECD’s Global Two Pillar plan for a global 15% minimum effective tax rate on multinationals and for the taxes on multinational profits to better reflect where products and services are sold.

Component 2: Limiting debt related deductions by multinationals

The proposal has two components that both commence from 1 July 2022.

Component 1: Carbon-dioxide (CO2)-equivalent emissions levy