Western Australian Premier Colin Barnett says he will ask the Prime Minister Kevin Rudd to either scrap or review plans for a super profits tax on the resources sector during talks today in Perth.
Mr Barnett has told the WA parliament the 40 per cent profits tax almost half of retained earnings is too high.
He says it's a hopelessly designed tax arrangement which will damage mining in WA and cost jobs.
Meanwhile, Mr Rudd is trying to bluff his way through the imposition of his new mining profits tax, the federal opposition says.
He claims the 40 per cent levy will pave the way for the government's big superannuation boost from nine to 12 per cent, Liberal frontbencher Ian Macfarlane says.
"(But) he is paying them nothing in superannuation.
"That comes again from the companies and small business.
"It is a lie to connect those two facets of the package."
Mr Macfarlane, who was resources minister for six years in the former Howard government, attacked Mr Rudd for his "philosophical objection to the mining industry".
He also rebuked the prime minister for his comments which set out to "demonise" foreign ownership.
"I've never been so ashamed in my life," Mr Macfarlane told a mining conference in Adelaide.
"This country has been built on foreign ownership."
Mr Rudd is in Perth to spend the day consulting with industry stakeholders about the proposed tax, which has been received heavy criticism from within the sector.
Opposition leader Tony Abbott, Mr Macfarlane and other members of the Liberal frontbench will also sit down with mining executives in Canberra on Wednesday to discuss the levy.
