(L-R): Iron Ore Holdings' Matthew Rimes, FMG's Andrew Forrest, Gindalbie's Mike O'Neill, George Jones, Swan Gold's Michael Kiernan and FMG's Russell Scrimshaw

Mining chiefs continue Rudd rage

Iron ore veteran George Jones says the next resources boom is being threatened by the proposed super profit tax as a group of fired-up mining executives today gathered to again express their anger at the Rudd government.


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So why were the Minerals Council of Australia (Australian Financial Review, 14 November 2008, p.12), generally positive on moving towards a profit based RRT system except for concerns that the taxation review may become a tax grab opportunity by the Commonwealth? Seems none of this was a surprise with the lengthy consultation period undertaken. Take the hit and pass on the costs.

In answer to Why Now. This tax grab seems to be looking at top line profit, not bottom line after CAPEX and OPEX has been taken into account, the fact that the announcement also stated that this tax grab was to fund and assist the poor performing economies of Vic and NSW has also struck a cord with both the WA and QLD markets. SA will soon follow suit as they see their growing mining industry stall and falter. Taking a hit and passing on the costs will do nothing, as the cost being passed on will be counted as profit and therefore subject to the tax.

This super tax will send our small business broke. We rely on the mining companies for their work and this will stop any ad hoc works that we fulfil. We have just made it through the recession. The mining sector kept us and many other people in jobs. Now Mr Rudd wants to send us back into recession, and we have once again taken a hit in the super with loss on share markets. Let us recover properly. I guess we won't have to worry about the skilled labour shortage - they'll be pushing shopping trolleys in Asia and Africa trying to get work there.

$1 out of $7 returned as tax is a lie. Currently about 40c in every $ is returned as tax and this will go up to 60c. Rudd needs to learn how to build a cash flow model!!

The Miners were expecting an increase in the tax they pay, but not at such a high level, commencing at such a low "super profit" point and not on existing mines/projects! I think the most important word here is compromise. The mining companies understand the need to pay a slightly higher tax, but the point at which this tax kicks in should be increased by 50-80% & it shouldn't apply to existing mines/projects. I think the overall idea of a "super profits" tax should be just that, on exorbitant profits well above the govt bond rate. The issue Mr Rudd has at the minute is how quickly can he come back to the miners with a more palatable plan, before more and more of his voters' superannuation dissipates like ether! Especially in an election year....... Time is Money Mr Rudd! You did a fantastic job with the help of Mr Stevens in saving Australia from a significant recession by acting quickly in 2009, but will you act just as quick to rectify the finer details of this new tax to be fair for all? Including the miners who will be leading the charge in our Great Country over the next 20-30 years! Help them to help us ALL! How true is this paragraph in our National Anthem? "Our land abounds in nature’s gifts of beauty rich and rare" ADVANCE AUSTRALIA FAIR Australians all let us rejoice, For we are young and free; We’ve golden soil and wealth for toil; Our home is girt by sea; Our land abounds in nature’s gifts Of beauty rich and rare; In history’s page, let every stage Advance Australia Fair. Cheers

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