40% Profit Tax on Mining Companies!

The Rudd government has decided to tax the mining industry of Australia by hitting them with a 40% super profit tax. The government says that the companies are making a super profit from the resources of Australia ,so they will be tax further than they are already being taxed.
Here is a link the a news article about this http://www.news.com.au/business/rudd-may-give-ground-to-miners-as-industry-ho...

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[awelux]

40% doesn't sound much. I'm taxed way higher by my government.

[GrahamAndFriends]

@awelux what is your tax in Germany?

[jesuslovesnachos]

Hmm. A resources super profit tax worked a treat in Norway! So it's tested and proven to be of huge beneift to a country. Maybe it's just the mining states whinging. The same states that take GST earned from profitable states as they can't earn enough for themselves. But no payback huh? How un-Australian of you all. All take and no give. Perhaps the federal government should give the GST raised to states who raised it. Now that sounds fair. You've been in the top paddock far too long bro!

[GrahamAndFriends]

@jesuslovesnachos actually I agree with a resources tax, I just don't agree how the rudd government went out about it. There approach was wrong.

[NathanTouring]

Given mining companies only pay 14% tax rate - it would have been a good idea. Also - you don't seem to have understood how the tax was to be applied.

[HeWhoKnocks]

Over a year later, Mining companies are incredibly profitable, so much so they're buying out the media. And every other sector of the economy has declined. Wouldn't we have been in a better position if the Rudd government had been able to pump some of those super profits into the struggling finance and services sectors?

[liberalcynic]

We own those minerals. it's ours, 40% is not nearly enough.

You don't go to the real estate agent to sell your home and ask only for 40% and give the seller 60% in commission.

This is a unfair. it's ours, it should provide for our hospitals, schools, universities, better infrastructure. get over it!

[imlay1992]

youve got absolutely no idea on how it works... lol... smaller companies actually end up paying less. and also mining co's generally dont give dividends. and its not 40% straight off the profit.

BHP just completed a $6b share buyback - that means theyre actually trying to get rid of money.

[bobcooper31]

You refer to the big mining companies and name BHP Rio Tinto and Fortescue. Fortescue Metals Group is a new start up mine and an absolute minnow in contrast to BHP & Rio. Andrew Forrest would be very pleased if FMG was one of the big miners.

[danielmy08]

That is why Labor governments are always looking to prop up new taxes (ie alcopops, cigarettes, luxury car tax, state taxes such as stamp duty on property purchases and yes the failed mining tax)...because it is their only answer to plugging holes in their budgets which they can never run into surplus. Labor are wasteful and successive labor gov'ts in power only ever get worse.

[danielmy08]

@politicalkid That argument is typical rant from labor politicians & supporters...but it simply does not stack up against Labor's record in government where both at the federal & state level, they have a marked track record of waste and mismanagement. Take the pink batts fiasco or the canned cross city metro here in Sydney which saw the complete waste of more than $400 million. Labor quite literally flush tax revenue down the toliet once in power & more taxes under a labor gov't means more waste

[politicalkid]

@danielmy08 I totally understand how the tax works, I am simply saying that it is ridiculous of the mining execs to be getting paid millions a year and letting the working class suffer from the tax. Besides, the money from the tax is going towards public good - healthcare, education etc. It's just a shame it has to come from the working class and not the super rich.