Prime Minister Kevin Rudd has announced that he is open to negotiation with miners regarding the proposed Resources Super Tax.
Rudd was in Perth yesterday to talk with miners regarding the new tax, saying that the 40% tax on profits was “about right”; however he declined to comment on whether the Government may adjust the tax.
He also denied that the proposed tax was the catalyst for Monday’s $6.7 billion fall in the share prices of mining companies.
Rudd has also condemned West Australian premier Colin Barnett for “walking both sides of the street” by asking for more money for infrastructure while also attacking the resources super tax which would raise revenues for additional infrastructure in the State.
“You can’t have it both ways. The premier of WA can’t go to Canberra and say, ‘Please give me more money for infrastructure’ on one hand and say no to the proposal on the other hand,” Rudd said.
Barnett has called on the Federal Government to drop its proposed 40% tax on mining profits as “the rate is too high” and has “cast a cloud over investment in WA.”
However, NSW Minister for Resources Ian MacDonald believed that the tax would not significantly dissuade investors from investing into the State.
Barnett’s comment come on the back of mining magnates Clive Palmer and Tony Sage stating that they will look outside of Australia for future projects because of the proposed tax.