I have only been involved in the resource sector for around 30 years.
When a Government comes out with a tax reform package involving 3 items out of 138 recommendations I am naturally curious. Even more so as they have had 5 months to digest those recommendations but only act on a few.
Simplify the whole thing? Why not add a marginal royalty to iron ore and coal (with a fair chance the end consumers will wear the impost)and leave the rest alone. Keeps it simple?
The gold industry in this country throws out a few ounces but can hardly be described as vibrant in terms of profitability. Same for base and exotic metals.
And now the issue clouds resource rent tax for the oilers?
Now the parasites within the legal and accounting communities are going to feast without any value add to the country.
Pick a date for the coal and iron ore boys, throw in a federal royalty, and see what that looks like. (Turkeys?)
This new tax regime creates uncertainty. Uncertainty in itself kills investment, irrespective of the real outcome.
