Sign in Subscribe
Mining industry

Resources Tax Sparks Accounting Boom

Strategic Insights

— 1 min read

The Australian government's proposed resources tax is expected to lead to an increase in accounting demands for mining companies, with industry insiders predicting a "gold rush" for accountants. Queensland Resources Council chief Michael Roche stated that companies may need to maintain four sets of accounting books to comply with the tax, citing the example of the Melbourne Storm rugby league club, which only had to maintain two sets of books.

Key Takeaways:

  • The Rudd government's proposed 40% profits-based tax is expected to require mining companies to maintain additional accounting records, leading to an increase in accounting demands.
  • Industry insiders predict a "gold rush" for accountants as companies scramble to comply with the new tax regulations.
  • Queensland Resources Council chief Michael Roche estimates that companies may need to maintain four sets of accounting books to comply with the tax.
  • The proposed tax has sparked concerns about state governments increasing their royalties, with Queensland Treasurer Paul Laby ruling out any increases in his upcoming 2010/11 budget.
  • The Queensland Resources Council is calling for a guarantee that state governments will not increase royalties if the federal tax is passed.

Statistics:

  • 40%: The proposed rate of the Rudd government's profits-based tax.
  • 4: The estimated number of sets of accounting books that companies may need to maintain to comply with the tax.
  • 2: The number of sets of books that the Melbourne Storm rugby league club had to maintain, cited by Queensland Resources Council chief Michael Roche as a comparison.
  • 2010/11: The fiscal year during which Queensland Treasurer Paul Laby plans to release his budget, in which he has ruled out increasing royalties.

Sources:

  • AAP (Australian Associated Press) article, "Resources tax sparks accounting boom", May 7.
  • Michael Roche, Queensland Resources Council chief, statement at the Australian Financial Management Association lunch in Brisbane, Friday.
  • Paul Laby, Queensland Treasurer, statement on avoiding royalty increases in 2010/11 budget.

Read more