Assessment item 1 — Individual or Group Assignment
Due date: 9 May 16
Length: 3000 words approximately
This assessment item relates to the course learning outcomes 1, 2, 3 and 4 as stated in the course profile.
This assessment task comprises several compulsory parts.
This assessment item may be completed either individually or in groups of three (3) students. The group mark will be given to all students. Please ensure that you include everystudents’ details and clearly identify that the assessment task is a group task. A forum will be available on Moodle for students seeking a group partner.
Students completing this item as a group task are required to work on all components of the assessmenttogether. You must keep a work journal of your group and individual contributions. This record will be attached to the assignment per Part D.
Further assessment guidelines are available on Moodle. The assessment checklist is also available on Moodle.
BACKGROUND AND GENERAL OVERVIEW
Theories of regulation are used to explain the regulatory process. You are required to examine the academic literature on Public Interest Theory and Economic Interest Group Theory. Identify, through a process of consideration and evaluation, one (1) academic journal article that discusses Public Interest Theory and one (1) that discusses Economic Interest Group Theory. Having identified and evaluated the articles, provide a detailed explanation of each theory, justify which theory best explains the case scenario, and discuss the case in the context of regulation being the output of a political process. The case is provided after the specific requirements presented below.
Ideally you should use the CQUniversity Library Databases to source your academic journal articles. The Library Guide for ACCT19082 provides additional guidance on appropriate databases and search options.
You may supplement the explanation of the theories in your articles with additional sources including your set readings.
PART A – Critical evaluation of information source 10 MARKS
Review the requirements for this assessment item carefully. Giving due consideration to the requirements, find and review one (1) scholarly academic journal article on each theory sourced from the CQUniversity Library database. Your articles should be (i) appropriate to the key requirements of the assessment item and also be (ii) identifiable as a quality source. To demonstrate this you must justify the quality of your articles using the five standard criteria for evaluating sources on the Library “Compass: library help online” site (see links to criteria on the Moodle course website or you can access it by navigating through the Library site). You may use a table in this part to summarise your evaluation.
You should write approximately 800 words in this Part.
PART B – Practical application of accounting theory 24 MARKS
(i) Write an explanation of each theory sourced, in the most part from the academic journal articles evaluated in Part A above (you may use additional sources to support your discussion including your set text). Your discussion in this section should be focussed on the key features of the theories. (12 marks)
You should write approximately 1000 to 1200 words in this section.
Following from your reading of the Media Release and newspaper article attached, you should now do some background research on:
• The Resource Super Profits Tax (RSPT) proposed by former Prime Minister Kevin Rudd;
• The RSPT’s replacement with a Minerals Resource Rent Tax (MRRT) by former Prime Minister Julia Gillard; and
• The recent repeal of the MRRT byPrime Minister Tony Abbott.
Which theory of regulation best explains the position of the Government when proposing the Resource Super Profits Tax (RSPT)? Justify your answer. (5 marks)
You should write approximately 300 words in this section.
(iii) Which theory of regulation best explains the regulatory process that occurred with the RSPT’s replacement with a MRRT and/or the MRRT’s repeal on 5 Sept 14? Justify your answer. (7 marks)
You should write approximately 500 words in this section.
PART C – Accounting regulation processes 2 MARKS
Discuss the Media Release and newspaper article in the context of the statement “regulation is the output of a political process”. Do you agree or disagree? Why, or why not? Include in your discussion what the potential social/economic consequences could be for the mining companies and society if a ‘mining tax’is or is not adopted.
You should write approximately 200 words in this section.
PART D – Journal and/or reflection 4 MARKS
Graduate attributes are the qualities, skills and understandings that a student should develop during their studies. These attributes shape the contribution students are able to make to their profession and society. Graduate attributes include: communication; problem solving; critical thinking; information literacy; team work; information technology competence; cross cultural competence; and ethical practice.
You will be assessed based on your ability to demonstrate your developing self-awareness of these attributes. Provide a self or group reflection on how this course and specifically this assessment assisted you in building these attributes. You may address only some or the entire list of graduate attributes.
If you have chosen to work as a group you must also include a work journal for this task. The journal should include details of group activities (when, where, what and how) and individual work undertaken (similar to a diary outlining your contribution). You should submit your journal/s as an appendix to the assessment item.
• The number of words is an approximate recommendation only; however, you should not vary too much from the recommended amount. Use your knowledge of the topic areas and the recommended length to determine the most important points to be included in the assignment.
• Additional information regarding this assignment may be placed on the course website. Regular access to the course website is a requirement of this course.
• You should refer to the relevant sections in the guide for students for information on researching a topic, writing an essay and referencing.
• Any material transcribed directly or paraphrased/sourced from the set textbook, other texts, journals, on-line material or a colleague’s assignment, and not properly referenced, will incur a penalty.
• Material in the assignment that bears a strong resemblance to another source and not correctly referenced will also be penalised. See the policies and procedures for assessment section of the course profile for further information.
Joint Media Release
Senator the Hon Mathias Cormann
Minister for Finance
Acting Assistant Treasurer Hon. J. B. Hockey
9 September 2014
Repeal of the Minerals Resource Rent Tax
The Government has delivered on its election commitment to repeal the failed Minerals Resource Rent Tax (mining tax), with the Bill receiving Royal Assent on Friday, September 5 2014.
The Government can today announce that it will be recommending to the Governor-General, His Excellency General the Honourable Sir Peter Cosgrove AK MC (Retd), that he affix by way of proclamation, 30 September 2014 as the commencement date for Schedules 1 to 5 to the Minerals Resource Rent Tax Repeal and Other Measures Act 2014. As a result the Schedules will have the following dates of effect for most taxpayers1:
• Schedule 1 - Abolition of the mining tax from 1 October 2014 (with taxpayers final MRRT year (even if it is a part year) ending on 30 September 2014);
• Schedule 2 - Abolition of the company loss carry-back from 1 July 2013;
• Schedule 3 - Reduction of the instant asset write-off from 1 January 2014;
• Schedule 4 - Abolition of accelerated depreciation for motor vehicles from 1 January 2014; and
• Schedule 5 - Abolition of geothermal energy concessions from 1 July 2014.
The dates above are consistent with the Government's 2013 Federal Election commitment, the Exposure Draft to the mining tax repeal legislation2, and with the dates announced in November last year at the time of the introduction of the first mining tax repeal bill to Parliament3. This is also consistent with the costings presented with subsequent bills.
The Government has consulted with the Australian Taxation Office (ATO) in relation to the administration of these measures and their dates of effect to ensure that assistance is provided to affected businesses.
Consistent with the policy the Government took to the last election and ATO advice provided to the Government, the relevant start dates have been outlined by the ATO and advised to taxpayers from as early as 8 November 20134.
1. Taxpayers with a substituted accounting period may have a different start date.
3. Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 introduced on 13 November 2013, the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 [No. 2] introduced on 23 June 2014, and the Minerals Resource Rent Tax Repeal and Other Measures Bill 2014 introduced on 1 September 2014.
4. Repeal of the mining tax: https://www.ato.gov.au/General/New-legislation/In-detail/Other-topics/Repeal-of-MRRT-and-related-measures/Legislation-to-repeal-the-minerals-resource-rent-tax-law/;
Abolition of company loss carry-back: https://www.ato.gov.au/General/New-legislation/In-detail/Other-topics/Repeal-of-MRRT-and-related-measures/Company-loss-carry-back-repeal/;
Reduction of the instant asset write-off: https://www.ato.gov.au/General/New-legislation/In-detail/Other-topics/Repeal-of-MRRT-and-related-measures/Instant-asset-write-off-and-simplified-depreciation;
Abolition of accelerated depreciation for motor vehicles: https://www.ato.gov.au/General/New-legislation/In-detail/Other-topics/Repeal-of-MRRT-and-related-measures/Accelerated-initial-deduction-for-motor-vehicles/;
Abolition of geothermal energy concessions: https://www.ato.gov.au/General/New-legislation/In-detail/Other-topics/Repeal-of-MRRT-and-related-measures/Repeal-of-the-deductibility-of-geothermal-energy-exploration-expenditure/
Miners strike out against MRRT with advertising campaign
April 13, 2012 12:00AM
THE mining industry has broken its advertising truce with the Gillard government, launching a pre-emptive strike against potential tax rises aimed at the resources sector in next month's budget.
In national newspaper advertisements launched today, the Minerals Council of Australia declares the mining industry has paid its fair share of tax and is -not a bottomless pit- for continual tax increases.
The MCA broadside came as BHP Billiton chief executive Marius Kloppers warned there had been -very appreciable cost increases- at BHP's Australian operations, with raw material prices and the dollar rising as productivity fell.
Echoing warnings from resource industry leaders about Australia's declining competitiveness as a place for mining companies to invest, Mr Kloppers said it was important to consider carbon costs, labour productivity and costs and the exchange rate when deciding on new investment.
He would not be drawn on the impact of the carbon or mining taxes, due to start on July 1, but - referring to Australia - said: -We've certainly become, as I've said before, less competitive over the last couple of years.-
Mr Kloppers's comments came a day after BHP announced the closure of the loss-making Norwich Park coalmine in central Queensland, threatening 1400 jobs.
The resumption of the MCA's Keep Mining Strong campaign - limited at this stage to print advertising - breaks the truce negotiated with miners by Julia Gillard in mid-2010 after she ousted Kevin Rudd.
The advertising blitz against Mr Rudd's mining tax helped weaken the then prime minister's grip on power by convincing Labor MPs that the stalemate could only be solved by a new leader.
The advertisements appeared as premiers prepared to meet the Prime Minister at the Council of Australian Governments meeting in Canberra today, and come as Wayne Swan eyes new revenue measures in next month's budget aimed at the mining sector.
These include a Greens-led push to dump the diesel fuel rebate for miners and cutting accelerated depreciation allowances.
The advertisements say Australian mining is paying 500 per cent more in taxes and royalties than 10 years ago and will soon have to pay the new mining and carbon taxes and an extra 6.2c a litre for diesel under the carbon tax package. -There are still groups demanding that Australian mining should pay even more through higher taxes and diesel and other business inputs, and increased royalties,- they say.
The advertisements warn that -there is a point where the rush to increase taxes, royalties and charges risks making Australian mining weaker, less competitive and less able to make the important contribution everyone wants for the long term. The first signs of that are emerging.-
The advertisements come amid increasing concern in the mining industry that next month's budget will target the $1.3 billion in concessions claimed by the mining and transport sectors in accelerated depreciation, and look at changes to research and development tax breaks. The revenue measures were included in a report handed to the Treasurer by the government's Business Tax Working Group, which also suggested ending the immediate deductibility of mining exploration expenditure.
The Australian understands some in the industry would see changes to accelerated depreciation as reopening the minerals resource rent tax because the issue was discussed in talks with the policy transition group.
Mining industry sources have also warned that changes to the accelerated depreciation allowance would jeopardise some resources investments.
New Queensland Premier Campbell Newman yesterday added to Ms Gillard's political problems, insisting all mineral resources rent tax raised from Queensland must be spent on infrastructure in the state.
His position directly contradicts the design and purpose of the tax, which is to raise money from the booming Queensland and Western Australian mining sectors to fund tax cuts for business outside the resources sector.
-What we've said all along is we have no argument with the federal government as long as the super profits come back to Queenslanders,- Mr Newman said.
-We're saying our principle here is if there's a mining project in Queensland that's paying this tax and a dollar is paid, a dollar has got to come back to Queensland to roads, to infrastructure across the state and, with the greatest respect to other states, not to build roads and infrastructure there.-
Asked how he hoped to achieve that outcome when it was at odds with the commonwealth's stated intentions, Mr Newman said: -I've only been the premier a couple of weeks. I am prepared to have the Prime Minister have a discussion about it and we'll see how it goes. But that's our position.-
A spokesman for the Treasurer said the government would be delivering the minerals tax.
-This major piece of reform will deliver a lower company tax rate opposed by the Liberals, who have instead announced they will actually increase the company tax rate for all large companies.
-The MRRT will also deliver small business tax relief and major infrastructure investment, particularly in mining regions,- the spokesman said.
-There will be hundreds of stories speculating about the budget between now and budget night - many of them will be wrong.
-The government doesn't intend to comment on that speculation except to say we will continue our record of strong economic management that has seen Australia become one of the strongest economies in the developed world, with solid growth, low unemployment, contained inflation and a record pipeline of investment, particularly in resources.-
CFMEU district president Stephen Smyth said in meetings held yesterday, the BHP Billiton Mitsubishi Alliance clarified that the closure of the Norwich Park mine was due to economic issues and not an industrial campaign across the basin.
He thought the closure was unnecessary, but the company had offered 340 permanent employees at the mine redeployment to other worksites or the option of applying for voluntary redundancy, Mr Smyth said.
The offer will be discussed at a mass meeting of members tomorrow, with another 100 or so CFMEU members who were contractors also likely to lose their jobs