Economic Analysis Of The RSPT
With A Postscript On The Negotiated Outcome
This note was originally prepared to support a presentation made by Brian Parmenter of Frontier (Australia) at Norton Rose on 15 June 2010. On 2 July 2010, the new Prime Minister, Julia Gillard, announced substantial changes to the Resources Super Profits Tax (RSPT) proposed by her predecessor, Kevin Rudd, rechristening it the Minerals Resource Rent Tax. We have opted to leave the main part of the note in its original form; it explains how rent taxes work and identifies the key deficiencies of the RSPT. We have added a postscript that addresses the recently announced changes.