The resource super profits tax develops a rate of tax of 40 percent levying upon super profits that will lead out of the utilization of non- renewable resources across Australia. Being essentially refundable, a credit for units of royalties mining tend to be recompensing across areas will also be in inclusion. The government considered designing this scheme due to certain benefits as expected from this particular scheme. The scheme had been established for the production of revenue out of projecting tax at 3 billion dollars in the initial period of execution that ended up reaching 9 billion dollars between the period of 2013 and 2014.
In addition, the general public managed to gain the ability of enjoying decreased value of price for the production of final products by those companies of mining. In addition, the rate of employment ended up increasing with further increment in the rate of production. As a result of this scheme, there has been an increase in investment in mining by 4.5 percent, further reducing the behaviour of monopoly delivered by large size organizations within the mining sector. Also small business organizations considerably gained the ability of growing the overall business across the industry.
As the overall scheme of RSPT had been designed in order to protect the interest of public, key explanation can be provided using the public interest theory can be used and applied in a significant manner. Hence, it can be stated that for providing the best explanation to the position of the authorities of government, public interest can be considered
Regulation theory used best for explaining the process of regulation that happened with replacement of RSPT with MRRT, repealing will then be provided. (500 words).
The Minerals Resource Rent Tax had been designed to replace a controversial scheme of tax that is Resource Super Profit Tax. There had been a proposal of MRRT by levying a tax scheme across the profits. This was due to increased mining of non- renewable resources in Australia. The announcement of this scheme was done on 1st July, in the year 2012. As per the proposal of this scheme, a tax rate of 30 percent had been imposed upon the organizations whose yearly profits ended up reaching 75 million dollars.