Kevin Rudds Mining Tax Explained.

[dule]

tab, the difference between mining and other large companies is that miners just dig up resources and sell it, once these things are dug up they don't just replenish themselves. It's not like farming where you can use the same piece of land forever, or some other type of business which uses people as a main resource (plenty of those f*ckers arround). I know that China is increasing tax on it's resources and if that document can be trusted a lot of other big mining countries are doing the same thing, so it's not like other places are tax free and we'll taxe people so high that they will just abandon Australia and go dig in a tax free heaven.

[tab]

Like I said, that's why they pay royalties.

If they feel that is not big enough contribution then change the royalty amounts for all future projects. Changing the tax amount in such a drastic way as this proposed tax that will effect all previous and current investment decisions where billions have already been committed is ridiculous.

Taxing someone more because they make higher profits is communism. Which is very closely aligned with Labor policy unfortunately.

[dule]

In that case I'd preffer to see variable royalties paid based on the current iron ore (or whatever they are digging up) prices.

[ronburgundy]

  On 10/06/2010 at 12:32 AM, dule said:

tab, the difference between mining and other large companies is that miners just dig up resources and sell it, once these things are dug up they don't just replenish themselves.

How about the banks - they're not exactly printing money are they? There's a finite supply of money too.

And the $70bn profit figure has absolutely nothing to do with taxable income, it is an accounting concept that bears no resemblance to reality. In fact even I don't truly understand exactly how that number is derived, and I can at least lay claim to having a post-graduate qualification in the area.

[dule]

Banks are just providing a service and ripping us off royally for it. We're the ones giving them our hard earned...

[ronburgundy]

Isn't that what the government has decided the mining companies are doing though - ripping us off by not paying what the government deems to be a 'fair clip' for the exploitation of our natural resources?

[Ralph Wiggum]

I was going to try and stay out of this one but im afraid i can't.

I wont in the non unionised contract mining industry (the REAL mining industry if you will)

I work at a marginal Iron Ore Mine (yes even iron ore can be marginal) I am a contractor. typically we are the first to go if cost are too high and profits are too low.

So i lose my contract due to this new tax, So now I cannot afford to spend my money. I can no longer pay the local guy that mows my lawn, The local vet that looks after my dog, the local hairdresser that cuts my hair, the local independant grocer where i buy my veges, etc etc etc and guess what, they can no longer afford to pay the people that supply goods and services to them. Pretty simple really.

So how much effect will the tax have on the magnates? Bugger all. How much effect will it have on normal people? F'n heaps. Increased cost means new projects that are of a marginal nature wont go ahead (theres a few thousand jobs) Current contracts that are nearing the end of there lifespan and now have increased cost per tonned (ie reduced profit margins) will become less viable and likely close earlier (theres another few thousand jobs.)

My point is, this tax won't affect the magnates, but It will affect the people directly and indrectly employed as part of the industry and the people who make a profit from mining, Shareholders! Im a share holder in mining companies and reduced profit due to increased taxes mean less dividends, so not only will i get screwed in the present, my future nest egg will get cracked as well.

Australia used to ride on the sheeps back, Now it rides in the back of a dumptruck, Unfortunatly KRudd is trying to take control of that truck!

[ronburgundy]

I'd neglected that part of the explanation until now but yes coulnd't agree more.

Uncle Kev is screwing his favourite buzzword of all, "working families"

I would imagine a lot of blue collar types would typically be Labour voters too...

[GOLDIE]

all kevin is worried about is digger his goverment out of the hole he,swan,and gillard dug themselves by spending to much money last year.

He is just realizing that the recession is going to bit now and it will be bitting hard and he has no money left to give us so he needs to take it from where ever he can.

Where I live it is already hit the ford dealer here where I was wrorking also sells tractors they have no work for me and are looking at putting two more off.

no one is spending anymoney and the farmers in the area are cutting costs to keep themselves afloat.

And now the new tax is going to put more out of work.

He claims to be for the workers but all he is doing is putting them on the dole line.

Ian

[Buf-Phoon]

Luke is right. What happens to have been neglected in this whole debate is the knock on effect. Has anyone done a cost V benefit analysis on this tax ?

How do these numbers stack up Mr Swann ??? NFI , I thought so

Grrrrrrr farkin rrrrrrrrrr