off shore processing, what benefit, page-13

JD,

I cant say I believe a special mining tax is necessary or that companies take it out of the ground for free.

The development cost of these mining operation is enormous and that only happens after many years of exploration and feasibility studies, which in an enormous number of cases ends in tears.

To name a couple of the companies I have been involved with, LYC, GBG and EVG, either have experienced or are experiencing the pain of financing and development.

If they eventually get their operations up and running profitably, I cannot see why they should pay any more tax than other Australian companies.

They and their investor take enormous risks, and deserve any profits they may be fortunate enough to get.

For me personally I have put quite a bit of money on the line for EVG ---- if I loose it it is my problem, but conversely if it gets up and running against the odds ---- I am not in a big hurry to share it with all and sundry.

I paid a bucket load of tax in the last couple of years, and it distresses me greatly to see it being wasted by the current administration.

It also worries me overseas ownership or the personal fortunes of Twiggy Forrest or Clive Palmer are put forward as reasons for the tax ---- these are other issues entirely.

Mining is unfortunately the only industry left in Australia that produces real wealth.
Banking is necessary for the economy to function but not the producer of wealth.
Farming is large scale, but it will not keep us afloat.
Manufacturing is history.

Lets not shoot our mining industry down.

Between company tax, construction costs, infrastructure, wages that give the average Australian a chance to participate in the big money, dividends, personal superannuation's, royalties, balance of trade and payments, country towns coming back to life, etc, etc ... it is not difficult to make a case that mining makes a considerable contribution.

We cannot have an effective tax rate on our miners of 60%, when the rest of the world come in at 30 to 40%. In a globalized word it just wont work in the medium to long term.

It is not as though one more tax increase will satisfy the hungry beast of big government.
It wont.

In the last 25 years we have had the CGT, which is a monster tax. A house in Brisbane which a friend bought in 1991 for $160,000 sold over the weekend for $918,000. It is the same little crappy house and if you had bought and kept it for your kids or your retirement --- the government want 25% or about $190,000.

In the last 10 years we had the GST, another monster tax.


Still the Govt has not got enough Australia and it people will not get rich on TAX.

Regards

Jim.