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Minister for Minerals and Forest Resources Ian MacDonald has called on the Government for clarity on the Resources Super Tax at the NSW Minerals Council’s OH&S Conference today.
Speaking to Australian Mining from the sidelines of the conference, MacDonald said “at this stage the details are somewhat sketchy on what exactly will be implemented so we will be seeking a full run down from the Federal Government, and will consult with the mining sector to get a greater idea of what impact it will have.”
Following the unveiling of the new tax laws yesterday, Kevin Rudd has already been called to defend the 40% tax on profits for mining companies after stating that the majority of profits already go overseas.
"BHP is 40 per cent foreign owned, Rio Tinto is more than 70 per cent foreign owned. That means these massively increased profits … built on Australian resources are mostly, in fact, going overseas," Rudd told ABC Radio this morning.
Rudd said the Federal Government will expect political campaigns against the reforms from the mining industry.
However, much of the impact will be on existing mines, with a package to be created for exploration within the new tax reforms, MacDonald said.
He went on to say that miners will not want initiatives that will have a negative impact on New South Wales, and that if the new tax is raising revenues then it will do so at the expense of the mining sector.
“We need to look at what the ramifications of this tax will be for miners in NSW,” MacDonald said.
On the issue of the potential scrapping of state royalties and the Federal Government’s rebates to the mining industry to avoid double taxing, he said that there will be further discussion into this matter.
MacDonald earlier stated that coal mining and exploration is the single largest export within the state, generating approximately $23 billion per year, and that the industry this resource tax does not have a negative effect on the continued growth of this sector and its potential to drive the State out of the global financial crisis.