TAX NEWS - June 2010

Resources tax under assault in Australia

The mining sector in Australia is continuing to eschew the Federal Government's proposed resources tax.

An industry conference in Brisbane has heard that the tax is based on the flawed belief that the mining bonanza will continue forever.

An analyst from Access Economics, Chris Richardson, told the forum that Australian could be shooting itself in the foot by slowing down the mining sector at a time when margins are so high.

Mr Richardson said a government tax levy would tax entrepreneurial effort as well as minerals.

Meanwhile, the premier of Queensland, one of Australia's top mining states, said the dispute over the proposed resources tax, which has been raging throughout the country, needs to be resolved as soon as possible so that mining companies can continue with certainty in their investment decisions.