TAX NEWS - 2010

Australia Tax: Australia's Swan Says Some Miners 'Dishonorable'

Australia's Treasurer Wayne Swan said some mining companies were behaving in a "dishonorable" way in the debate about the government's proposed 40 percent tax on mining profits.

A number of companies have used "strong-arm tactics" to keep smaller companies from commenting favorably on the plan, Swan said on Channel 10's "Meet the Press" program today.

"Some companies are not behaving in an honorable way, some companies are setting out to defeat this tax," Swan said. "Behind the scenes, a small number of companies are using strong-arm tactics to silence other companies both in the mining sector and more broadly from commenting on the need for us to cut the corporate tax rate."

Miners including BHP Billiton Ltd., Rio Tinto Group and Xstrata Plc are campaigning against the tax, seeking to exempt existing projects as well as reduce the proposed rate.

In the treasurer's weekly economic notes released today, Swan said the government has held consultative talks with over 600 representatives around 365 companies and tax associations.

Prime Minister Kevin Rudd wants to implement the tax from 2012, raising an estimated A$12 billion ($10 billion) in the first two years. The levy would give Australia the world's highest tax rate for mining companies, according to the Minerals Council of Australia.