The Effect of Changes in Taxation Legislation on Australian Mining Company Profitability
In the economic evaluation of any Australian mining project, changes in taxation can significantly affect viability. Australian tax laws, particularly in the period since early 1973, have undergone many changes which have led to shifts in the profitability of mining companies. This paper examines the sensitivity of a selected, broadly based sample of Australian mining companies to the changes that have occurred, or are reasonably likely to occur, in taxation legislation. In the past, tax systems have been altered for a variety of reasons, such as 1. reduction in the impact of inflation 2. neutralization of incidence between different sections of the economy 3. as an incentive to encourage expansion and growth in a particular industry or area, and 4. increase in the real "take" of government. In this paper, conventional rate of return analyses are applied in a study of how profitability is affected under various taxation systems.
S. Gillies and E. G. Thomas, "The Effect of Changes in Taxation Legislation on Australian Mining Company Profitability," The AusIMM Conference, Australasian Institute of Mining and Metallurgy (AusIMM), May 1977.
Mining and Nuclear Engineering
Keywords and Phrases
Australia; Mining; Taxation
Article - Conference proceedings
© 1977 Australasian Institute of Mining and Metallurgy (AusIMM), All rights reserved.