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Australian Prime Minister Julia Gillard has announced a new arrangement for the taxation of resources.
The system scraps a 40 percent resource super profits tax, instead implementing a minerals resource rent tax at a rate of 30 percent.
Gillard says the new arrangement will allow the nation to move forward after being stuck on the question for quite some time.
The government has also excluded all commodities from the tax apart from iron ore and coal, easing industry fears about the potential impact on base metals projects.
The new taxation arrangements are planned to begin on July 1st, 2012. They will apply only to the value of the resource rather than the value added by the miner, thus allowing the miners to claim back against depreciation of the assets.
Wayne Swan, Australian Deputy Prime Minister, said, "We have achieved a profits based tax in the mineral sector. We've done that with consensus. I think that's a very substantial achievement."
However, the new measures come at a cost, garnering 1.27 billion US dollars less revenue than the previously-announced resource super profits tax.
Gillard says that despite this, Australia will get a fairer share of mining wealth.
Julia Gillard, Australian Prime Minister, said, "This will deliver better returns for the resources that Australian own and it can only be dug up once. It will end uncertainty and division. It will invest a portion of the value of our resources into better superannuation for our people."
Friday's agreement ends a two-month brawl with the resources sector which contributed to Kevin Rudd's ousting as prime minister.
A policy transition group, led by Resources Minister Martin Ferguson, will oversee the development of a more detailed version of the plan.
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