Question:
UK carbon tax closes Rio Tinto Smelter
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
Rio Tinto is the second largest mining and resources company in the world and it is headquartered in the UK and listed on the London, New York and Australia’s stock exchanges.
It has announced the closure of the Lynemouth Aluminium Smelter in England because new UK carbon taxes have made it unprofitable.
The Chief Executive of Rio Tinto Alcan, Jacynthe Cote said …it is clear the smelter is no longer a sustainable business because its energy costs are increasing significantly, due largely to emerging (environmental) legislation…The smelter is located in Northumberland in England and employs 515 people and had operated since 1972.
Apparently, it was breaking even, but the combination of three pieces of legislation will add $73 million GBP to the cost of its operation.
The European Union large combustion plants directive requires the purchase of credits for sulphur emissions, the European Union Emissions Trading Scheme will require the company to purchase carbon credits at auction and the company will become subject to the UK carbon fall price in 2013.
Media Release, Rio Tinto Alcan announces intention to close Lynemouth Aluminium Smelter, the Australian, Rio closes Lynemouth Aluminium Smelter, eyes sales of power plant, International Tax Review, Why Rio Tinto says UK carbon tax is not its main concern.
