The tax has been given a new name - the Minerals Resource Rent Tax (MRRT). It was previously known as the Resource Super Profit Tax.
The headline tax of 40 per cent has been reduced to 30 per cent, despite the federal government's previous refusals to back down on the rate. The reforms will be limited to iron ore and coal projects, and will only apply to 320 companies.
The government says the reduced rate will make the industry "internationally competitive".
Petroleum resource tax extended
The MRRT will apply to iron ore and coal. However, the current Petroleum Resource Rent Tax will be extended to cover all onshore and offshore oil and gas projects. There will be no rebate for new exploration costs.
To finance the changes, the company tax rate will now only drop to 29 per cent, instead of the promised 28 per cent.
The federal government estimates the reforms will reduce revenue by $1.5 billion in the forward estimates.
well that is a 25% reduction in the tax which would have meant 3bn but I suppose the other changes bring it down to 1.5bn but still not as good as the budget planned!!!