NSW Minister for Minerals and Forest Resources Ian MacDonald has called on the Federal Government to provide clarity on the Resources Super Tax at the NSW Minerals Council’s OH&S Conference today.
“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,” MacDonald told from the sidelines of the conference.
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% foreign owned, Rio Tinto is more than 70% foreign owned,” he told ABC Radio this morning.
“That means these massively increased profits … built on Australian resources are mostly, in fact, going overseas."
However, MacDonald said much of the impact will be on existing mines, with a package to be created for exploration within the new tax reforms.
He said that miners will not want initiatives that will have a negative impact on NSW 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,” he said.
MacDonald said there would be further discussion on the potential scrapping of State Royalties and the Federal Government’s rebates to avoid double taxing.
MacDonald earlier stated that coal mining and exploration is the single largest export within the state, generating approximately $23 billion per year.
The industry needs to ensure 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, he said.