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Accounting and Society(The Minerals Resource Rent Tax) - Essay Example
Author : schamplin
Finance & Accounting
Pages 12 (3012 words)
The Government of Australia has proposed a new resource rent tax known as Mineral Resource Rent Tax (MRRT) that will be effective from the beginning of July in 2012. It replaces the earlier proposed Resource Super Profits Tax or RSPT…
Australian government collects huge revenue from the taxes paid by the mining industries in the country. The various new features of MRRT have been included in this study. Moreover the potential impacts of the introduction of MRRT on the accounting policies followed by the mining companies have also been studied. Mineral Industry of Australia has been reviewed and its inherent potential and its industry structure have been studied in this report. Australia is well known for its varied natural resources. Both metallic and non-metallic minerals are widely found in Australia. It is rich in fuel minerals too. Commodity exports from Australia in the form of minerals and energy constitutes a significant portion of Australian economy. Earnings from commodity exports are expected to rise on a continuous basis for Australia because of rising demand of mineral resources worldwide. Global Financial Crisis (GFC) had an adverse effect on the mineral industry in Australia. The rise in the production of commodities like iron ore, copper, bauxite, natural gas, etc. have slowed down in the recent years. However, the country has a huge potential of mineral production and several investment projects are expected to come up or are already going on. Western Australia is the leading state of the country in terms of exports of metallic minerals. ...