New Australian PM Could Change Tax that Threatens Projects

24 June 2010 (Last Updated June 24th, 2010 18:30)

Australia's new Prime Minister, Julia Gillard, who entered power after her party ousted its leader Kevin Rudd, could look to alter the proposed super profits mining tax, according to reports. The tax could threaten more than half of the proposed expansions and projects in Queensland, a su

Australia's new Prime Minister, Julia Gillard, who entered power after her party ousted its leader Kevin Rudd, could look to alter the proposed super profits mining tax, according to reports.

The tax could threaten more than half of the proposed expansions and projects in Queensland, a survey revealed this week.

The Queensland Resources Council assessed the impact of the tax on current operations and proposed projects in the state, revealing 53% of future projects were likely to be put under threat.

The survey also said 46% of respondents believe they may have to scale back existing operations to remain viable, while 16% are considering shutdowns.

The shelved projects could cause Queensland, with its major mining region of Mt Isa, to lose $25.3bn in capital expenditure, 10,000 construction jobs and 4,500 operational jobs.