There will still continue to be a heightened sovereign risk for Australia in spite of this settlement.
If somebody wanted to make a large-scale investment in a base metals project which is currently exempt, what certainty do they have that it will not be enveloped into MRRT in future?
Having said that, any country could conceivably change its taxation regime at any time so there is a sovereign risk with any country for that matter. The problem I think is how the government approached this matter. Their should have been a prior discussion with industry before the RSPT was announced and it is a shame that it took a change of prime minister to attain a reasonable outcome.
