Sunday, May 23, 2010

Mining industry's real effective tax rate is 41.34%

Professor Sinclair Davidson checks the student’s paper on which Treasurer Wayne Swan relies in claiming the miners pay an effective tax rate of as little as 13 per cent:
Either Swan doesn’t understand what it is Treasury are telling him, or Treasury (and the Henry Review) don’t understand the underlying paper that they are quoting… The evidence does not support the argument the Henry Report, Gillard and Swan have made.
Go here for Davidson’s full analysis.

Davidson also checks the real effective tax rates paid, and find they are much higher than the Rudd Government claims:
I had a look at the ATO Taxation Statistics, specifically tables 8 and 9 of the corporate tax statistics. I calculate two measures of effective tax rate. First just the Net Tax to Net Income and second Net Tax plus Royalty expense to Net Income. Results are shown below in the table. Note that Mining has the highest effective tax rate after accounting for Royalty payments.

Posted via email from Garth's posterous

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