IDEAS home Printed from https://ideas.repec.org/a/bla/ajarec/v59y2015i4p586-601.html
   My bibliography  Save this article

Reconsidering royalty and resource rent taxes for Australian mining

Author

Listed:
  • John Freebairn

Abstract

type="main" xml:id="ajar12113-abs-0001"> It is argued that a comparative assessment of a royalty and a resource rent tax as a special tax on the Australian mining industry should recognise the following: the importance of quasi-rents earned on investments which shift out the mining supply curve over time, the dominance of nonresidents as buyers and as shareholders, and available data on relative costs for mines with more and less favourable natural resource endowments. Comparable tax rates for the two special taxes to generate similar government revenue are derived. For approximate revenue neutral taxes, the efficiency and distributional effects of the royalty and resource rent tax options are assessed and compared. In terms of efficiency, the superiority of one over the other is ambiguous because of imperfect knowledge about key parameters. In terms of returns to Australia, and in particular the aggregate of transfers from nonresident shareholders and export buyers, both provide similar outcomes.

Suggested Citation

  • John Freebairn, 2015. "Reconsidering royalty and resource rent taxes for Australian mining," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(4), pages 586-601, October.
  • Handle: RePEc:bla:ajarec:v:59:y:2015:i:4:p:586-601
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/ajar.2015.59.issue-4
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Youmanli Ouoba, 2023. "Testing the necessary conditions for sustainability in the mining sector in Burkina Faso," Mineral Economics, Springer;Raw Materials Group (RMG);LuleƄ University of Technology, vol. 36(1), pages 1-12, January.
    2. Fogarty, James J. & Sagerer, Simon, 2016. "Exploration externalities and government subsidies: The return to government," Resources Policy, Elsevier, vol. 47(C), pages 78-86.
    3. Drew, Joseph & Dollery, Brian Edward & Blackwell, Boyd Dirk, 2018. "A square deal? Mining costs, mining royalties and local government in New South Wales, Australia," Resources Policy, Elsevier, vol. 55(C), pages 113-122.
    4. Valle de Souza, Simone & Dollery, Brian & Blackwell, Boyd, 2018. "An empirical analysis of mining costs and mining royalties in Queensland local government," Energy Economics, Elsevier, vol. 74(C), pages 656-662.
    5. Ge, Jianping & Lei, Yalin, 2018. "Resource tax on rare earths in China: Policy evolution and market responses," Resources Policy, Elsevier, vol. 59(C), pages 291-297.
    6. Jason Nassios & James Giesecke, 2022. "Property Tax Reform: Implications for Housing Prices and Economic Productivity," Centre of Policy Studies/IMPACT Centre Working Papers g-330, Victoria University, Centre of Policy Studies/IMPACT Centre.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ajarec:v:59:y:2015:i:4:p:586-601. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.