There is a huge gap between what miners expect to pay and what Labor expects to earn from the mining tax, according The Australian.
The Federal Treasury has reported that the mining tax will earn the government approximately $10.5 billion in revenues over its first two years.
This is in stark opposition to the few hundred million that the three big miners; Xstrata, BHP, and Rio, believe it will cost them per annum.
In total, it would be nearer the $1 billion mark, rather than the predicted $5 to 6 billion forecast by Labor.
It is reported that this multi billion dollar disconnect between the miners’ understanding of the tax and that of the Government is behind the big three’s drop in protesting against it.
Following the announcement of this enormous difference, the Government is re-launching its tax campaign, after concerns were raised regarding Labor making potential deals with the Greens to gain their support.
The mining industry is relying on Julia Gillard to stick to her agreement with the mining industry to cap the tax rate at 22.5%, and not increase it to 50% as the Greens have pushed for.