Impact of Budget 2017-18 on the Mining Industry
In good news for miners, there are very few changes contained in Budget 2017-18.
There are no immediate tax changes to businesses in the mining industry, with changes to the PRRT scheme proposed in the Callaghan Review being deferred whilst Treasury undertakes further consultation with members of the oil and gas industry.
The Callaghan Review recommendations included:
- Changes to uplift rates, transferability of expenditure and order of claiming deductions for new projects;
- A review of treatment of closing down expenditure;
- Requiring taxpayers to lodge PRRT annual returns as soon as they acquire an interest in an exploration permit, rather than when the project starts producing assessable receipts;
The ability for the Commissioner to grant an administrative exemption from lodging PRRT returns where they are clearly unlikely to pay PRRT in the foreseeable future.