Mineral mining overview

The bill proposes to repeal and replace the current rules that apply to mining companies that explore for, develop mines for or physically mine “specified minerals”. There are 50 specified minerals, of which gold, silver and iron sands are the most commonly mined.

The current rules that apply to specified mineral mining are highly concessionary. The changes proposed in this bill are designed to more closely align the treatment of specified mineral miners with that of taxpayers more generally, while accommodating some of the more unique aspects of the mineral mining industry.

The proposed new rules were signalled in the officials’ issues paper, Taxation of specified mineral mining, released in October 2012. The rules proposed in the bill vary in some respects from those proposed in the issues paper. These variances are in response to submissions received and subsequent consultation with interested parties.

The changes will apply from the beginning of the 2014−15 income year.