Australia Considering Changes to Super Profit Tax

26 May 2010 (Last Updated May 26th, 2010 18:30)

Australia could ease its proposed super profit resource tax to lessen the impact on miners in an effort to renew confidence in the nation's mining industry. The government said it is considering easing the tax threshold from 6% to 11 or 12% after a number of major miners threatened to mov

Australia could ease its proposed super profit resource tax to lessen the impact on miners in an effort to renew confidence in the nation's mining industry.

The government said it is considering easing the tax threshold from 6% to 11 or 12% after a number of major miners threatened to move projects offshore.

BHP Billiton, Rio Tinto and Xstrata have already put projects on hold in Australia until the tax has been clearly defined.

A number these companies have said even easing the threshold will do little to restore confidence in mining in Australia.

The government said if it eases the tax, it will instead withdraw a taxpayer-funded compensation scheme originally offered for mining projects that failed to offset the revenue from a reduced profit tax.

The government’s consultation panel, headed by Treasury deputy secretary David Parker, is expected to make the recommendation about the revised threshold in a report submitted to the government later this week, according to The Australian.