profess Mining companies already pay their fair share of tax. In fact they pay more. They pay royalties plus company tax and now they should pay a addittional tax of 40%. However they do get a few concessions and the new tax is tax deductable but the summary is that mining companies will now pay a effective tax rate of 50 to 55% on every dollar earned while every other company pays 30%. I would like to hear how fair you think it would be if your personal tax went up by 25% purely because you worked in a profitable industry.
This tax is a absolute disaster for every Australian not just mining companies. As a australian you will eventually have to pay extra tax to fund the shortfall from the mining industry as it shrinks in size over the years.
The labour party are spining this as a super profits tax but it is not. It is a tax on all mining companies reguardless of how much profit they make. It is a tax on gold,zinc,lead, copper and nickel companies. It is not just a tax on iron ore and coal or BHP and RIO.
This tax will kill off many mining projects as their just will not be the profit margins available to justify financing.
It is only 12 months ago that mining companies were barely profitable
The big beneficiaries will be foreign countries especially in Africa.
