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.


Mining Engineering

Keywords and Phrases

Australia; Mining; Taxation

Document Type

Article - Conference proceedings

Document Version


File Type





© 1977 Australasian Institute of Mining and Metallurgy (AusIMM), All rights reserved.

Publication Date

01 May 1977

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