letter from marius kloppers

The following is a letter sent by Marius Kloppers to BHP Billiton employees and contractors ...

CEO Message: Proposed Super Tax

Colleagues,

I want to update you on the latest activity in relation to our opposition of the Australian Government�s planned introduction of the super tax.

I am disappointed to report the resources industry is at a stalemate with the Australian Government in relation to the proposed super tax. In particular our industry is extremely concerned at the government�s narrow consultation process and their ongoing lack of discussion about the design and key elements of the proposed tax. This is despite this tax applying to an industry that is the backbone of the Australian economy and which almost every Australian has a share in through their superannuation or pension fund, as well as through the jobs and wealth it creates.

The proposed tax will make the Australian resources industry pay more tax than in any other country. This will seriously threaten the ability of Australia�s resources industry to compete against resource companies which operate in other parts of the world where tax rates are lower.

It has been incorrectly claimed that this tax is being levied because the industry isn�t paying its fair share of tax and has only been paying a rate of 13 - 17 per cent. BHP Billiton�s total effective tax rate was 43 per cent in 2009 and averages 42 per cent over the last six years.
If the super tax goes ahead it will threaten Australia's competitiveness, jeopardise future investments and adversely affect the future wealth and the living standard for all Australians.

The Australian community has worked hard over decades to build the strong economic foundation of the country and this could be undermined if the Government does not fully consider the new super tax. If we are going to have a new tax that benefits all Australians, industry and government need to continue to work together to get it right.

I believe the proposed tax is not in the interest of the Australian resources industry, and more importantly, not in the interests of Australia. It is important we all fully understand the implications of the tax.

Answers to the most commonly asked questions regarding the proposed super tax are available on the portal. [Not Attached]

Marius Kloppers
Chief Executive Officer