Unnamed government sources told the Australian Financial Review that up to $A4 billion can be saved by binning the badly-received exploration rebate which accompanies the RSPT, along with the 40% capital allowance policy for unprofitable mining companies.
These savings could mean low-priced resources, such as those targeted by the quarrying sectors, could be removed from the scope of the RSPT, according to the sources.
The newspaper reported that the government might announce its changes to the RSPT this Friday, with the new tax push likely to be centred on the big miners such as BHP Billiton, Rio Tinto and Xstrata.
On Monday the Australian Bureau of Agricultural and Resource Economics forecast strong growth in coal and iron ore earnings for the next financial year because of higher commodity prices.
These better expectations for Australia’s export-leading industries will undoubtedly attract government attention.
Treasurer Wayne Swan already used Queensland coking coal royalties as an example of how Australians are being “short changed” over mineral wealth last week.
He also views the recent agreements by BHP and Rio to pay higher state iron ore royalties as another example of Australians not getting a fair return.
Meanwhile, the International Monetary Fund has backed the implementation of a RSPT.
According to a report on ABC News website, IMF deputy head of tax policy Philip Daniel told a tax conference in Sydney that the IMF welcomed the RSPT proposal in principle.
“It shifts the whole Australian resource tax system strongly in the direction of neutrality," the report quoted him as saying.
"It offers strengthening of Australian public finances over the long term, reduces risk of absolute loss for investors, while leaving a substantial share of resource profits in private hands."
Daniel also believes the RSPT won’t cause adverse effects to Australia's economic prospects.
"Consensus forecasts offer evidence that the outlook for business investment has in fact strengthened for Australia in recent months," he said.
