Resources Council Joins Fight Against Australian Mining Tax

6 June 2010 (Last Updated June 6th, 2010 18:30)

The proposed resource super profit tax could short-change Queensland, Australia, by A$2.5bn, according to analysis undertaken by the state. Queensland Resources Council chief executive Michael Roche said a council-funded study by KPMG shows that Queensland taxpayers would have to recover

The proposed resource super profit tax could short-change Queensland, Australia, by A$2.5bn, according to analysis undertaken by the state.

Queensland Resources Council chief executive Michael Roche said a council-funded study by KPMG shows that Queensland taxpayers would have to recover these losses in the first two years after the tax is implemented in 2012.

According to Roche, Queensland resource companies are estimated to pay an additional A$4.5bn to the Federal Government, while the federal budget tax concessions and outlays funded by the super tax are set to return only A$2bn to Queensland taxpayers in the first two years.

Australian Prime Minister Kevin Rudd has, however, rejected these claims.

A spokesperson for Australian Treasurer Wayne Swan told the Sydney Morning Herald the figures in the KPMG report were misleading and that "calculations like this aren't possible until the final allocations from the substantial infrastructure funds are announced".

"We have said a major focus of the [tax] is injecting infrastructure funds directly into mining states like Queensland and their mining communities who for far too long have missed out on their fair share," Swan said.