Newspaper article The Observer (Gladstone, Australia)

When Is Profit A[euro][approximately]super' and When Is a Tax Improper Impost on Investment?

Newspaper article The Observer (Gladstone, Australia)

When Is Profit A[euro][approximately]super' and When Is a Tax Improper Impost on Investment?

Article excerpt

Byline: DARREN EISING with RBS Morgans

WHAT is a a[approximately]Super' Profit?

Most of the investment world is gob-smacked by last week's announcement of the Resource Super Profits Tax.

Certainly the term a[approximately]super' profits is misleading a it is a tax of 40 per cent on the vast majority of profits after the normal 30 per cent corporate tax rate has been paid. Companies will only be allowed to earn around 6 per cent a year before being subject to this tax (which is the current bank interest rate).

This goes against basic investment fundamentals a that for a business to commit billions of dollars to a project, you will need to earn a return commensurate with the risk a the higher the risk, the more return required.

The proposed resource super profits tax will raise the bar that much more, increasing the average tax rate for mining companies from 38 per cent to 58 per cent. This makes Australia the worst regime in which to do business (the next worst being the US at 40 per cent). …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.