Former Reserve Bank Governor Bernie Fraser has come out in support of the Federal Government’s Super Profits Tax on mining, calling it “long overdue.”
Fraser told ABC Radio’s program this morning that the mining industry had been “crying wolf” over the threat of new taxes.
“I am amazed that there has been such vocal opposition; not from the miners, one has to expect that kind of reaction,” he said.
“But it is very disappointing to hear the Coalition expressing such views so strongly too because I think it is very much in the national interest for a greater share.
“Even under the present arrangement the Government is talking about leaving 60% of the super profits with the mining companies.
“But to get 40% of the super profits for the community from the development of their non-renewable resources is all to the good in my view.”
Fraser, who is now an independent director of two industry superannuation funds, hopes that the money garnered from the mining tax will go towards further increases to the superannuation guarantee.
The Government announced the guarantee would increase from 9% to 12% with the help of the taxes, but Fraser believes this should eventually rise to 15%.