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alp227

(32,056 posts) Mon Mar 19, 2012, 09:57 PM Mar 2012

Australia passes controversial mining tax into law

Source: BBC

The Australian Senate has pushed through into law a 30% tax on iron ore and coal mining companies.

The tax will raise A$10.6bn ($11.2bn, £7bn) over three years from major companies including BHP Billiton, Rio Tinto and Xtrata.

Strong demand for raw materials from China and India has lead to a resource boom in Australia.

The mining tax is aimed at distributing the benefits of that revenue to other segments of the economy.

Read more: http://www.bbc.co.uk/news/business-17441170

4 replies

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Australia passes controversial mining tax into law (Original Post) alp227 Mar 2012 OP

It is only "controversial" in the minds of Australian mining magnates and Fool Count Mar 2012 #1

Good on them..... pfitz59 Mar 2012 #2

30% tax on what? minavasht Mar 2012 #3

The tax is on "superprofits" - defined as profits in excess of 7% interest Fool Count Mar 2012 #4

Fool Count

(1,230 posts)

1. It is only "controversial" in the minds of Australian mining magnates and

Reply to alp227 (Original post)

Tue Mar 20, 2012, 12:14 AM

Mar 2012

their political lackeys. So the "controversy" is between them and the rest of Australia.
It is a testament to how powerful the mining interests are that they managed to remove
a Prime Minister over it, with the new one conceding 25% off of the originally proposed
rate (40%). That's A$3.5bn taken from Australian taxpayers and transfered to mining
billionaires as a gift. Not a bad return on $22 million spent by miners on anti-tax advertising
campaign and a modest unknown under-the-table amount that the coup cost them.

pfitz59

(10,391 posts)

2. Good on them.....

Reply to alp227 (Original post)

Tue Mar 20, 2012, 09:20 PM

Mar 2012

Hope some of the revenue makes it into Aboriginal hands.....

minavasht

(413 posts)

3. 30% tax on what?

Reply to alp227 (Original post)

Wed Mar 21, 2012, 12:17 AM

Mar 2012

Sales, profits?
If this tax increases the price of Australian iron by 30%, there will not be Australian iron exported - it will make it overpriced and customers will switch to other suppliers.

Fool Count

(1,230 posts)

4. The tax is on "superprofits" - defined as profits in excess of 7% interest

Reply to minavasht (Reply #3)

Wed Mar 21, 2012, 09:29 PM

Mar 2012

typically paid by Australian banks on long-term investments. Prices on minerals are determined
by international markets, no Australian tax could possibly affect them.

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