Have kept the politics element out of this post.
A simplistic approach to some numbers here but I find the following interesting.
Last year
iron ore sell at $75 tonne
BHP pay 43% tax = $32 tonne to govt.
BHP keep $43 per tonne
Next year
Iron ore sells at $120 tonne
BHP pay 57% tax = $68 tonne to govt.
BHP keep $52 per tonne.
??????????????..
So in a boom market and with the increased tax BHP make more. Why would we see a cut in investment from this tax in a boom market.
In non boom / bad times. Super profit threshold is not reached. No super tax but a reduced 28% company tax only.
And maybe (not sure how it works) if the Govt. still rebates the royalty then the miners get that back in bad times.
How much better can it get!
????????????????
While my figures simply compare one year to another we are in a period of boom. BHP are telling us things like "stronger for longer" boom times China / India at least 10 good years coming.
Even during the GFC , BHP and RIO( I think) still made very healthy profits.
So now is the time that the govt can take the tax and mining companies make more money than they did in last few years when investment was no problem (except lack of funds during GFC)
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