i don't think there is anything wrong with the concept of a resource tax. However, where the real problem lies is in this government's frighteningly little understanding about basic economics.
Surely they have no idea about what the 10 year bond rate actually is. This is a risk free return. Why would you be investing funds in drilling and development etc, when you can simply invest you money risk free.
A 'risk premium' (approx 5%) should be added to the 10 year bind rate and any earnings above this should then incur a tax. Remember, a BHP is only running on a margin of about 12-13%.
I think this is has it will be watered down.
ESG Price at posting:
75.0¢ Sentiment: LT Buy Disclosure: Held
