Fortescue Metals CEO Andrew Forrest has stepped up pressure on Prime Minister Julia Gillard on the resource super profits tax by releasing details of a compromise reached with her predecessor.
In a speech to the Australian Financial Review's WA Economic Outlook Conference Mr Forrest said FMG was one of a number of companies which had been working closely with Kevin Rudd's office in the days before he was ousted and achieved a position on the handling of the RSPT which was to be released to the mining industry.
Mr Forrest said the revised position included an immediate write-off for new capital; increasing the uplift rate from 6 per cent to 15 per cent; reducing the impact of retrospectivity by doubling the value of existing capital recognising a transition to a new tax regime; moving the taxing point for projects to the point of mineral extraction; and the removal of the 40 per cent government guarantee.
He said Ms Gillard must ensure her Government achieves a substantially improved position on aspects of the RSPT compared to Mr Rudd.
"It should never be forgotten that the existing design of the super mining tax meant Australia would pay more than double Canada's tax rates, which would have seriously harmed the Australian economy as capital relied on to build Australian jobs would have fled the country," Mr Forrest said.
"It would be a great shame if the finalised outcome of any negotiations between the Gillard Government and the mining industry were anything less than what was achieved while Mr Rudd was PM, otherwise his departure will be recognized as futile," he said.
