BHP pays 40% Petroleum Resource Rental Tax on offshore
resources while it only pays 10%-12% Sate Royalties on
onshore oil & gas resources and 7.5% State Royalties on
iron ore.
The difference here is due to the State owning the onshore resources
on behalf of the Crown while the Commonwealth Government owns
the offshore resources.There has been too much competition between States on
Royalties to the determent of the taxpayer and it is about time that
the Commonwealth stepped in and harmonised Resource Royalties
with the PRRT.
I have worked most of my life for multinationals in sales and marketing
and in my experience no multinational ,where there is more than 2
players in the market space, would defer profit opportunities for the
sake of what might happen later.
Their general the mission was to make as much money as you can now.
Or alternatively, don't forego profit now for the sake of a potentially bigger
profits later because market and regulatory circumstances may change
in the interim.
(in other words, make hay while the sun shines)
Cheers
moorookamick
