Aussie Mining Tax Gets Another Look

New Australian Prime Minister Julia Gilliard has retreated from the bald tough approach of her predecessor, Kevin Rudd on the proposed mining super tax.

Ms Gilliard has stepped back from the controversy that surrounded the issue and has suspended the Government’s proposed advertising campaign which was to explain the reasons behind the tax.

In turn the major miners, BHP Billiton and Rio Tinto have issued positive comments on the situation and have welcomed the possibility of discussions with the new PM.

The whole mining tax issue currently has two major problems attached to any potential resolution. Firstly the Government budget is considerably influenced by the tax revenues expected from this new tax. Secondly the miners are holding fire on a number of new projects and the spending of billions of dollars until they can determine that their projected expansion will be financially worthwhile.

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Posted by Florence Andrew on Jun 25 2010. Filed under Business, Featured News, Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry