Funny, I didn't this message from what was released from the OECD. My take was more aligned with this -
"In its Economic Survey of Australia, the OECD says while the Mineral and Resources Rent Tax (MRRT) is "justified" and is set to finance a number of welcome initiatives, should commodity prices fall faster than expected "this policy could lead to a structural deterioration of the budget".
"Spending decisions should be disconnected from resource tax revenues," the Paris-based institution says."
OECD warns on MRRT, NBN budget impact
That is - when conditions degrade and the profits wane, the MRRT is going to be next to useless. Elementary dear watson.
That's why a production based tax has endured this recent test of time. If it was profit based, Australia would have sunk like a stone.
The MRRT as profit based is a disaster waiting to happen.
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