The Australian Treasury contracted KPMG Econtech (2010) to estimate the efficiency cost of Australian taxes, using the MM900 Computable General Equilibrium model. The resultant report, endorsed by Treasury, was a major input into the Henry report into AustraliaÂ’s Future Tax System (AFTS) and...

The 'Henry tax review', Australia's Future Tax System (2010), recommended that royalties be abolished and replaced by a resource rent tax. Regarding abolition, AFTS drew on KPMG Econtech (2010a), a report commissioned by Treasury to investigate the efficiencies of a wide range of Australian...

We argue five main propositions. Firstly, the choice between royalties and profit-based taxation involves an efficiency trade-off, between diminished incentives to produce output on one hand, and diminished incentives to minimize costs on the other (as in Laffont and Tirole 1993). So the Brown...