The WA Chamber of Commerce and Industry says the minerals resource rent tax remains a major cash grab on the mining industry.
The WA Chamber of Commerce and Industry says the minerals resource rent tax remains a major cash grab on the mining industry.
The CCI is concerned that the re-badged tax will impact heavily on WA's employers.
"Despite being watered down, the government is seeking to impose a tax which in its first two years alone will take $10.5 billion tax out of this State's, and Nation's, leading industries," said chief executive officer, James Pearson.
The CCI is also worried that the deal was struck without comprehensive consultation with business and industry.
"Fewer than one per cent of all the companies that will be directly affected by the new tax had a seat at the negotiating table," said Mr Pearson.
"There remain many unanswered questions about how the re-worked tax will impact on local business," he said.
The CCI also claims that the government is misleading the public by claiming the mining tax will fund increases to the superannuation contribution.
"The reality is, the payments will come directly out of the pockets of all employers across the country," said Mr Pearson.
Meanwhile, retailers says they will be hit hard by the federal government's backflip on company tax rates.
The new mining tax, will garner $1.5 billion less revenue than the previously announced scheme.
The promised two per cent cut in the corporate tax rate will now be just one per cent for the foreseeable future.
Australian Retailers Association (ARA) executive director Russell Zimmerman said the move would "hit retailers hard".
"Due to tax concessions to the mining sector, the Gillard government has penalised all companies and small businesses that were due to benefit from the promised company tax cut," he said in a statement.
Retailers were already struggling with weak trade figures, a minimum wage increase and increased superannuation payments.
"It's a pretty depressing outlook for retailers when their income from sales is decreasing, expenses from wage bills are increasing and now superannuation will increase with only a one per cent cut to the company tax rate," Mr Zimmerman said.
He urged Prime Minister Julia Gillard to consult openly with retailers - "who represent a large part of the Australia economy and who employ over 1.5 million people".