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What impact will the "two taxes" in Australia have on China?

what impact will the "two taxes" in Australia have on China?

China Construction Machinery Information

Guide: from July 1 this year, the two new taxes carbon tax and mineral resource lease tax promoted by the Gillard government in Australia will be officially implemented. The main collection objects of carbon tax and mineral tax are concentrated in Australia's mineral and energy fields. They are also an important part of China's trade and investment in Australia

from July 1 this year, the two new taxes "carbon tax" and "mineral resources lease tax" pushed by the Gillard government in Australia will be officially implemented. The main objects of "carbon tax" and "mineral tax" are concentrated in Australia's mineral and energy fields. They are also important areas of China's trade and investment in Australia. What impact will the introduction of "two taxes" have on Chinese enterprises

"carbon tax" and "mineral resource lease tax" have been controversial in Australia since their introduction, which led to the downfall of the former Rudd government of the labor party. After the Gillard government came to power, with the support of the Green Party and independent lawmakers, the two taxes were passed in November last year and March this year respectively

according to relevant laws, the main target of "carbon tax" is the top 500 carbon emitters in Australia. From July 1 this year, these enterprises will pay a carbon emission tax to the government at a price of 23 Australian dollars/ton. It is estimated that among the taxable enterprises, about 100 enterprises involved in coal mining and other mining industries constitute the so-called tool wear industry, and about 40 enterprises involved in natural gas supply. The "mineral resources lease tax" is levied on coal and iron ore enterprises with an annual profit of more than $75million for a short time, and the tax rate is reduced to 22.5% of the taxable profit. Minerals and resources are the main areas of China's trade and investment in Australia. How will these two taxes affect Chinese enterprises

the labor government has repeatedly stressed that these two taxes will not affect foreign enterprises' trade with Australia, which is one of the trends and investments in building materials' environmental protection and energy conservation. In terms of trade, martinferguson, Minister of resources, energy and tourism of Australia, said in an interview recently that he believed that the "two taxes" would not affect the price of mineral products in the international market: "the international market price of mineral products is determined by the relationship between supply and demand. In terms of mineral resources tax, it is a tax based on the net profit of enterprises and should not be transmitted to the international market price."

however, in terms of coal and iron ore alone, Australia is the world's largest coal exporter and the world's second largest iron ore exporter. Its coal and iron ore exports account for more than 1/3 of the international market. This gives Australia considerable bargaining power in the international trade of coal and iron ore. In fact, many local economists point out that both carbon tax and mineral resources tax will be transferred to end consumers by enterprises in the long run. Guoshengxiang (blog, microblog), honorary chairman of the Australian actuary Association, predicts that in the next 5 to 10 years or so, the production costs of relevant Chinese enterprises will rise due to these two taxes in Australia

the long-term impact of the "two taxes" on China's investment in Australia is more obvious. Bluestone mining in Australia is a tin producing enterprise, which is not within the scope of carbon tax and mineral tax. But recently, enterprises have begun to feel the pressure of carbon tax. Rose cook, general manager of bluestone Mining: "This week, we are studying the impact of carbon tax on our enterprise. Many of our suppliers have recently issued price increase notices. For example, we need to use hydrated lime in our mines. Our suppliers recently informed us that the price of hydrated lime would increase by $8 per ton. We also received a letter from the shipping agent informing us that the freight will increase the production capacity. In short, although we do not need to pay carbon tax, those who pay carbon tax are the most It will eventually transfer the cost to us. "

for the Chinese investors who just invested in bluestone mining in 2009, the rising cost undoubtedly squeezed the profit space, and also brought greater uncertainty to the profit prospect of the enterprise

however, Australian resources Martinferguson, Minister of energy and tourism, does not recognize that the two taxes will affect Australia's attractiveness to foreign investment: "When it comes to whether the two taxes will affect Australia's attractiveness for overseas investment, while we discuss the two taxes, Queensland alone signed a $45billion worth of coal-bed gas and natural gas investment projects; in march2011, a year ago, BHP Billiton made 12 decisions to invest in Australia in the UK. In reality, there are still record investment plans in Australia."

as Ferguson said, the planned investment in Australia's mineral sector this year has set a record, but it is worth noting that some large local enterprises have reduced their investment scale due to the recent decline in the prices of some minerals in the international market and the uncertainty brought about by the "two taxes". From the historical experience, there is a lag period in the effect of tax policy. Therefore, Chinese enterprises should fully consider the impact of the two taxes when investing in Australia. Guoshengxiang pointed out that, especially in the process of M & A, Chinese enterprises need to pay attention to reviewing various materials submitted by Australian target companies and projects, confirm the accuracy and comprehensiveness of their information related to the two taxes, calculate the impact of the two taxes through the pricing model, and then reflect it in the acquisition price

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