Resources rent tax hysteria rises
BHP Billiton has joined the debate surrounding the federal government’s use of an American university report in to the levels of tax paid by mining giants. BHP denied government accusations that multinational miners paid as little as 13 per cent tax, releasing figures which showed its effective tax rate was 43 per cent. The company was responding to the government’s use of the US study, which the opposition described as ‘amateur hour’ because it had been co-authored by a PhD student.
Constitutional fight for super profits
Prime Minister Kevin Rudd has refused to back down on the resource super profits tax despite criticism from Australia’s leading public economist and threats of legal action. While not opposing the tax overall, Professor Ross Garnaut said the federal government should be prepared to change the tax and listen to the debate. Western Australian Attorney-General Christian Porter said the proposed tax faced a constitutional challenge in the High Court.
Budget: Barnett delivers surplus
In his first outing as treasurer, Premier Colin Barnett delivered a promised surplus – $286 million – on the back of sharp royalty rises, increased services charges to households, and restraint in spending growth. The premier was apologetic for increasing electricity (up 10 per cent from July) and water (17.7 per cent).
Clive Peeters in administration
The owner of the Rick Hart stores, Melbourne-headquartered Clive Peeters, has appointed McGrathNicol as voluntary administrators. The appointment of McGrathNicol came hours after the electrical appliances and whitegoods retailer placed a trading halt on its shares on the Australian Securities Exchange, saying it was holding talks with its financiers.