A fair share of our resources

A better way to charge for our resources

Australia has abundant non‑renewable resources, which are expected to continue to command high prices driven by demand particularly from China and India.

The current resource charging arrangements distort investment and production decisions, thereby lowering the returns from resources.

They fail to collect a sufficient return for the community because they are unresponsive to changes in the value of deposits. They have collected a declining share of the return to resources over the recent period,

despite increasing profitability in the resource sector.

The Government will introduce a Resource Super Profits Tax (RSPT) and reduce the company income tax rate.

The RSPT will replace crude oil excise. The states will keep their existing royalties, but these will be refunded to companies. Projects currently within the scope of the Petroleum Resource Rent Tax will have the option of electing into the RSPT.

This will increase the return to Australians from non‑renewable resource deposits and will stimulate greater investment and growth.

RSPT will provide more consistent treatment of resource projects that

will promote efficient investment and production outcomes.

The RSPT will apply from 1 July 2012.

Existing resource projects will be provided a generous transition in recognition of existing project expenditure.

Supporting resource growth

The Government will establish a $5.6 billion fund over a decade to support the investment in infrastructure necessary for the ongoing development of the resource industry.

The Government will also provide a $1.1 billion resource exploration rebate to support small exploration companies.