Prime Minister Julia Gillard has struck a deal with mining companies over the controversial 'super profits' tax, making significant concessions. Here are the main points of the agreement.
*The new tax regime includes the Minerals Resource Rent Tax (MRRT) and the Petroleum Resource Rent Tax (PRRT).
*The MRRT will only apply to iron ore and coal projects at a rate of 30 per cent, reduced from 40 per cent.
*Other commodities will not be included, which reduces the number of affected companies from 2,500 to around 320.
*The PRRT will apply to all oil, gas and seam methane projects both onshore and offshore, at a rate of 40 per cent.
*The tax is not a 'super profits' tax. Assessable profits will be calculated on the value of the commodity, determined at its first saleable form at the mine gate, less all costs at that point.
*Projects are entitled to a 25 per cent extraction allowance, which reduces taxable profits.
*Investment post 1 July 2012 will be able to be written off immediately - meaning that a project will not pay any MRRT until it has made enough profit to pay off its up front investment.
*Small miners with profits below $50 million per annum will be exempt from the tax.
*The tax comes into force from 1 July 2012.
