Premier digs in on super profits tax

Around a quarter of planned resource projects in Western Australia will be canned if the federal government pushes ahead with its 40 per cent super profit tax, Premier Colin Barnett says.


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How come the Smith/Rudd/Tanner team did not come up with this ''super profit' tax earlier, when the boom was on? They claim that it has nothing to do with bringing the budgut back into a surplus. (In an election year!) They claim that Australians desere a better share of these profits. (In an election year!) If this government had not squandered millions on mishandled home insulation schemes, on mishandled school buildings schemes - not to mention the border INSECURITY! - they would not have to come to this 40% tax. They could have used it for the projects that they now claim, will be paid for out of this 40%!! Wake up Australia, this is not the first time Labor has stuffed this country up. After all it is mining that kept us out of a deep depression, NOT the 'ASTUTENESS' of the Smith/Rudd/Tanner team. There will be less big earning employees, paying big taxes. Oops ..... they forgot that!!!

The Premier presumably has direct contact with Tony Abbott so I would suggest he puts to the Leader of the Opposition that increasing extraction royalties would be a fairer way to keep mining revenue in Oz and that, if super-profits are to be taxed, this impost should be levied against any enterprise whose profits exceed the defined threshold and especially against the banks - whose profits are viewed by the community as obscene! This way, off-shore investers will be more confident about putting funds into our mining industry, the hike in royalties can be scaled down to have less impact on forward mining industry profitability than a 40% resources tax - and the coalition will probably win the general election by taking aim at the most unpopular industry in the country!

I am far from an economist (thank the maker) and don't not know enough about the intricacies of this new proposed tax but is there a way we could all look at the Rubix cube differently for a win/win/win? I am sure there are a number of micro & macro economic factors such as the unit cost of labour and pre-existing supply arrangements, but my personal view (albeit over simplified) is perhaps instead of simply taxing the profit of companies AFTER all the work has been done, why don't our politicians negotiate to build in more local content (both people and products) into the contracts when they sign over the rights to a company on any resource or mining project? I imagine our communities, both metro and regional would benefit significantly much more up and down the supply chain with an increased local content clause rather than a simple cash grab right at the end of the process. Again, maybe over simplify but would we not: a) sure up the utilisation of all of our existing workforce: design, construction, operation & maintenance b) facilitate the growth of our manufacturing/fabrication industry with guaranteed supply contracts c) create sustainable employment opportunities for those already in the workforce (& still at school) d) stimulate our education & training sector to develop further into centres of technical excellence e) generate increased taxable income for the government from a fully skilled and utilised workforce I look at resource rich countries and cities who are working hard now to ensure after their finite resources dry up, their communities have a well rounded, fully functional and sustainable economy. An economy and community capable of surviving long after the rigs, trucks, trains and boats stop shipping resources and might instead bring people to visit and/or stay to live and work. Last time I looked, Perth didn't have a skyline like that of Sydney let alone Dubai... ak

Rudd is doing what Chavez is doing in Venezuela, the difference being, Rudd is doing it in a backhanded manner. Love or hate Chavez and his socialist policies, at least he is up front. Look at many countries in the world that have had Socialists in power, in the end they get voted out, leaving usually a large deficit for the next government to sort out. Did any of his left wing buddies put up any money when the mining companies took the risks and the costs of setting up what has been a bonanza for the whole for Australia. Aussies get rid of them before you end up like UK and New Zealand, you have a great country, don't let them ruin it.

Las Vegas, Nv.
Absolutely amazing! Mr. Rudd's [stance on] his Super Tax is concerned, his powers of observation are questionable. Like most Politicians, "he can't see the forest from the trees"!!! ( nor the unintended consequences) I guess Mr. Rudd missed Rio Tinto, BHP, & Vale's response to China over the price of Iron Ore-Take it or Take a Walk!!! Obama in the US, Rudd in Australia, lets see what Cameron tries to get away with in The British Isles. If he tries any of these Marxist approaches and Bolshevik Methods there; then, as the old Chinese saying goes "May you live in interesting times". Be very cautious however; as one might not live very long, as getting rid of these parasites won't come easy.

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