I think you are right. Whilst I detested the Howard govt and welcomed the change of govt. the U turns and other policy calamities have been very damaging for Australians. In connection with business it really does appear to be government by grenade, motivated my envy.
I am not adverse to a profits based royalty tax, nor to slowing the resources boom somewhat (even if that has some negative impact on my investments). As an investor (foreign), I do however object to the sudden confiscation of a punitive 30% or so of the NPV of some existing assets, and am appalled with the uncertainty it has created wrt future investments in the whole resources sector.
As an investor we have to accept some tax increases, just as we have accepted lowered corporate taxes over the years, but this could be of goose killing severity. Surprising that a former diplomat acts with the subtlety (and perhaps the effectiveness) of a nuclear warrior.
LoveCCE, I can't see anyone without a hole in the head who has a decent major gas project opting out of PRRT and into RSPT (as currently outlined). You can model the decision on a back of an envelope imho.
As for my reading, the government has appeared to have put out very little of substance. The doc on futuretax.gov.au is ALL spin. I have scoured the web for insights from various secondary sources. There are huge uncertainties, but what is known, eg LTBR, 40%, book value of existing assets is mostly highly unappealing to an investor, as is the uncertainty, and the increased hurdle ROR for projects brought about by the sovereign risk damage.
Please point us to govt document that clarifies rather than spins.
EL
CUE Price at posting:
28.5¢ Sentiment: LT Buy Disclosure: Held
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