The big problems facing governments going forward are unfunded social obligations of retirement, health and pensions which have to either be funded by higher taxes or spending cuts. Australia has chosen the path of higher taxes on one particular industry which strikes me as remarkably unfair when it has only recently crawled out of the worst bear market in its history. Anyone that thinks mining companies naturally make profits has been reading too much media drivel - I was managing money in 1996-2001 in the mining funds and if a company actually had a PE that was remarkable.
The irritating thing about this is that it will just encourage less investment and more inefficiency, as some smart alec is sure to invent a business of charging high mining services rates to mining companies to reduce their EBITDA before the RSPT, thereby taking the earnings that would be subject to it. Watch out for West Perth accountants to get very busy on that one if these idiots actually pass this tax
