In Australia there is a saying that sarcasism is the lowest form of wit and your sarcasm is rudimentary to say the least.
The fundamental question is "how much tax should resource companies (particuluarly those in iron ore and coal) pay and by what means?
Rather than trying to play the man it is fairer to play the ball even though some may find that rather difficult.
My position is:
That the RSPT is a bad tax for reasons already posted on this thread.
I would prefer an extension of the existing royalty regime on iron ore and coal to 10% of the first $100/ton and 20% thereafter. (Qld has 7.5% on the first $100/ton & 10% thereafter on coal)
I realise that one rate wont fit all because of the economics of extraction and gross margins
Coincidentally both coal & iron ore has a spot FOB price of approx $140/ton with a cost of approx $40/ton.
This leaves approximately $100 margin with the above formula and would yield $18/ton for the owner/taxpayer and $82 EBITA for the miner.
Supposing Rio exports 200 million tons iron ore P/A thats $16.4 billion EBITA without its coal and $3.6 billion for the taxpayer. Thats fair.
The fairest thing for all Australians is that this royalty is distributed evenly among the States as per the GST and States who now pocket the royalties would still have the labour benefits of the enterprises.
The big issue for Australians is what is the fair market value for our resources over the long term, not what politician is Prime Minister.
Rio & BHP have enjoyed a 2% royalty concession since the early 1960s which was outed last weeks during negotiations with by the WA Premier re the combined Rio-BHP mining entity.
It would be a nice gesture for both miners to offer backpayment given the colossal profits being currently made and given that their subsitised railways are not available to third parties like FMG & Atlas Iron.
