The mining industry forms a significant part of our Australian economy.
So, it is with interest that we see an increased level of interaction between the ATO and the mining industry.
Research & Development Tax Breaks
The Treasury is looking into redefining the types of expenditure that constitutes R&D for the mining industry. It is specifically looking at disallowing deductions for “indirect” R&D costs.
A significant part of the R&D cost for mining companies is something called “overburden” costs.
This is cost to the miners of removing waste whilst extracting the valuable raw ore. The costs may involve blasting to remove the waste material as well as returning the land to its natural state after extraction.
The mining industry is one of the major users of the R&D tax concession so it will be interesting to see how the government will weigh the tax savings generated vs. encouraging economic growth.
Its a typical short-term vs. long-term argument.
From the Taxabull team
#1 provider of Australian tax information on twitter
Similar Posts:
- Research & Development Tax Concession
- The numbers drive the strategy
- The Government wants its money (Project Wickenby & Offshore Voluntary Disclosure Initiative)
