Nah, he's not reading the forum, he's sitting down getting ready to spend your pay cheque.
I guess some of it will come my way.
Thanks!
They're hardly in the same bracket as other companies.
There is a competitive advantage to exploiting minerals in this country over others where similar resource deposits may be. Access to markets, investment capital, infrastructure and stable government.
I think the Government should be getting what they can. They're making profits from digging holes and taking a countries fixed natural wealth. It's non-renewable and not exactly benign compared to many industries (relatively high levels of pollution, environmental degradation, some in culturally distinctive locations). While companies are making SUPERprofits from very high resource prices the federal government has every right to get in there and get a bit of the golden goose - it should intuitively be in the form of higher resource rents but that only flows to the states.
Who's going to pack up and leave when they're making money hand over fist!! It's actually similar in concept to a progressive taxation system which we all accept for payroll...those that can afford to pay more pay a higher rate. It does need to be flexible so if resource prices head south it turns around though.
The tax is to cover the stimulus package the country couldn't afford.
Certainly a Robin Hood approach "robbing from the rich to pay the poor."
"exploration and mining is all about risk/reward as an investment. take away a large portion of reward and no one is willing to risk their capital"
Well said!^^
Kevin Rudd is only finished because he is not able to sell his message effectivley.
A resource rent type tax already exists for the energy industry, but I haven't seen them leave Australia - or more particularly WA - yet. The top end of Saint George's Terrace (little Houston) is likely to stay very busy for quite a few years yet.
No doubt the introduction of the new tax will have an effect on activity, but maybe it will be more of a temper / brace on the volatility within the market and extend the time horizon of the projects in question. Not such a bad thing really.
Also, it is hardly as if the resource rent tax is for the average punter, unlike the GST. The target is a very specific group of companies reaping some pretty obscene profits coutesy of some extraordinary commodity price circumstances that currently exist. Why not make sure that ALL AUSTRALIANS share in it.
The opposition and the heads of the large mining companies should stop making such misleading statements about this. Their lack of credibility is obvious on this one. This is not another one of Abbott / Hockey's "great big taxes on everything".
The budget is wisely conservative - the cash handouts worked a treat and now it's time to wind back - unless you want ramapant inflation or increased house loans?
Big boosts in health that unbelievably have been lacking in 15 yrs of strong economic growth. Huge big-ups (IMO) for that alone. Schooling has faired better recently also.
The govt have seriously stuffed their chances with the shemozzle they (and the opposition) have made of environment policies tho.
Don't forget - although the environmental policies went badly - they weren't even on the table (same for SORRY) under the previous regime.
Can't believe no-one has patted the govt on the back for the good it has done since getting in i.e. SORRY, GFC policies and well intentioned (but flawed) environmental policies. Also a real connection with a far better US govt, rather than a snivelling little lickspittle 'yes-man' behaviour.
Most folks just want to blame the govt for everything but I for one am happy under this lot rather than the vultures in opposition.
BTW - the super resources tax has been on the cards (at the suggestion of the reserve bank etc) for 30yrs. The time is now to make resources work for the whole population - not just those rolling oin the dough. A lower introduction of around 20% may be wiser tho?
Do we want to become even more like the US in that big business lobbies for policy rather than the public? Then don't believe the BS that resoyrces will grind to a halt under the new taxes. Bollocks.
The resource rent tax (renamed super profits tax to make it very desirable to working families) is a good idea in principle. It is a tax on profits. The current royalties paid by mining companies must be paid regardless of the economic outcome for the miner.
However, the tax amount proposed is absurd. As beautifully stated, mining is about risk and reward. Some projects just don’t work (enter Ravensthorpe and South Hedland - hot briquettes plant). Is the government prepared to share this risk as the potential rewards are much greater than the long-term bond rate (which is the safest possible investment and used as the benchmark to define a “super” profit).
The tax will reduce the number of projects that are financially viable. It will reduce mining companies capacity to pay debt. This will impact jobs; and not just mining jobs. It will impact all that are employed during construction of projects (1000-2000 skilled people for ~2 years) and it will also impact people who service (directly and indirectly) the mining industry. I guess it is lucky we have a skills shortage
The clincher for me is the pool of money that is there for the government to grab will become smaller as projects don’t make it. Less income tax. Less GST revenue (did anyone mention WA only gets 68c back in the dollar, compared NSW 95c?). All of this is before the mining industry enters another downturn, as it does...
I like the idea of spreading the taxing around. Banks are mining the pockets of working families. Where is the government action on that one?
If the government does get a mandate to introduce this tax at the next election, I hope they think about subsidising my basket of groceries as the cost of living here in WA is high compared to other states. Boo hoo, it's just not fair... $20 for two pints is stupid!
BTW, the terms working families and basket of groceries make me feel ill
I thought SUPERtax was perhaps even in reference to how it was going to pay for the SUPERannuation increases for its government employees. Dunno.
I think a lot of people are confused on this one. I read some mining CEO saying company was going to be paying 70% tax now.
Hmmmm... That is an interesting one... Will profit from each operation be taxed or the entire company (or specific arm of that company). Hadn't thought of it that way... Seems like a simple way to hide cash from Kev, take on a lot of debt... We've been there before
Obviously, the returns on iron ore and coal are very different to nickel and gold...
I am a gold miner, Pugwash Gold... Via my subsidiary, Pugwash Nickel, I am starting a new mine. Can I deduct this as an expense
BTW, Pugwash is clearly not an accountant
An accountant dog?! what!?
You only pay tax on profit. Of course : )
Any company not making a profit is not affected by tax, no matter what the tax rate is. Right? And if you make a loss of $10/year for 5 years, you won't pay any tax at all until you earn over $50.
Don't tell me a mining company told you they can't afford to invest any more because of tax. That makes no sense. 
Tax is after profit, which is after any and all expenses. You won't pay tax on an expense.
Exploration is tax deductible
Tax can never, ever put something out of business. It can only take profit, after wages et al, down to $0, and it would have to be 100%. Think about it.
He he he... funny panda
It is fact that there will be less returns on what may be risky investment... Risk vs reward is always taken into account by companies when deciding where to invest and what to develop...
Maybe we see less of the big $$ that has been pouring into Aus from China.
We will see a lot of uncertainty in the industry here. The budget depends on growth of the industry and does not take into account inflation. The uncertainty will delay projects and will slow the short-term recovery of the industry...
The demand for resources is increasing. Resources are so hot right now (thus the super tax).
You have a large sum of money to invest in mining. Pick a resource and then pick a country that has it from the following map:
1. Which ones look a bit, risky? Unstable governments, poor infrastructure and low levels of skilled workers. Local militias to deal with even.
Of the remaining, safe countries which have less than 40% tax overall?
2. Where are you selling the resources to? Which country is closest?
If companies leave they will be replaced.
your realise that the national poll is based upon how many green thumbs he receives in this thread on seabreeze?
the super tax is a stupid idea and the labor party are dumb idiots.
was that too harsh? 
As usual, I respectfully disagree with Gestalt
Good to see the different points of view stated well, without any personal attacks
I'm enjoying reading this 
If we're voting I have to say the resource rent tax is a brilliant idea. They've done pretty well with their mad Keynesian spend. Now they have to get us out of debt. How better than to raise the price of resources. Bloody everything else is going up.
