This proposal would introduce a new 40 per cent mining super profits tax on the super profits of individual Australian mining projects, where the super profits would be calculated at the project level as revenue less expenses.

The proposal consists of six components.

Component 1: Deny royalty tax deductions to Significant Global Entities (SGEs) for related party transactions.

Deny SGEs a tax deduction for royalties for the use of, or right to use, intellectual property within Australia, when either:

• the royalties are paid to a related party
• the party to which they are paid is in a jurisdiction that provides preferential tax treatment for intellectual property royalties.

Component 2: Change thin capitalisation rules.

The proposal would amend the definition of a ‘fuel efficient car’ for the purposes of the luxury car tax to include vehicles with a fuel consumption of no more than 4 litres per 100km (the current definition includes vehicles with a fuel consumption of no more than 7 litres per 100km).

The request also sought an assessment of the behavioural impact of the proposal on the sale of luxury cars.

The proposal would start 1 July 2023.

The request sought estimated financial implications and distributional analysis of Stage 3 of the personal income tax plan as set out in the 2018-19 Budget measure Personal income tax plan and the 2019-20 Budget measure Lower taxes for hard-working Australians: Building on the Personal Income Tax Plan over the medium term. The Stage 3 tax cuts take effect from 1 July 2024 and involve: