MINING TAX

Without a Federal “Mining Tax” the Gillard Government had no hope of achieving a budget surplus in 2012/2013.

The spin by the Gillard Government is that these resources belong to all Australians and that we should all enjoy the resultant “profits” that mining brings.

Ownership of Assets

• The assets below the ground to the best of my understanding belong to the States.

• The States impose Royalties to raise revenue.

• The revenue supports the provision of services such as roads, ports and the mining communities

Sharing the Wealth

• These miners already supposedly pay taxes (eg company tax, personal income tax, payroll tax, capital profits tax).

• The distribution of profits to investors (and capital growth) benefit the owners of shares. Superannuation Funds, Self Funded Retirees being among the beneficiaries. Further taxing may increase the Federal coffers, but penalises these other beneficiaries.

Special Deals

Within legislation are “concessions” for mining.

Concessions were introduced in the past for Gold Mining. Historically when our currency was backed by gold held by the Government this had validity. Today this is not the case, and perhaps the removal of these concessions should now be considered.

I am not privy to the “deals” with the Big Miners that the Gillard government has made to get their support. I can only speculate that it is beneficial to them, and probably to the detriment of other taxpayers.

In Summary

• With this government's track record, any gain will probably be wasted.

• Increased taxes should be in the form of Royalties by the States, the owners of the assets.

• If the Gillard government wants more revenue, perhaps review the concessions given to miners.