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May 2010 - The RRT or RSPT

  • The Australian Treasury gave their first RSPT (Resource Super Profit Tax) presentation in Sydney on 24 May 2010, as part of a trip until June 11 around the major cities in Australia. The following comment is based on notes I made in the presentation together with the handout, and the responses to various questions. (KG Note : Two of the main presenters stated in the coffee break that they were new or relatively new to the resource industry and all its finer aspects, but welcomed consultation.
  • There were 3 presenters on a panel-type table: the main guy who when the questioning became detailed referred to an older/greyer man, and a lady, together with some other people from the Treasury with roving mikes. I asked the two main presenters if they had a business card for further queries, discussion on royalties & depreciation, but they have no cards as yet as they have only been in this job for ~1month).
  • It was insisted that this is a new tax that replaces and simplifies the State Revenue royalties (typically ~ 2.5% of revenue). Its simplicity is clearly shown in Figure 1 (KG Note: one line in a spreadsheet now may need to have its own spreadsheet). Some more profitable companies will pay more, some will pay less but it is simpler and fairer (KG Note: it sounded like the original GST argument).
  • Tuesday, 25 May 2010