Firstly, revenues generated by this tax should be (IMO) channeled in to initiatives such as the construction of minerals processing plants mandatory for all minerals extracted from Australian soil- further bolstering the Australian employment opportunity and local economies- there is no clarity as to exactly where this surplus revenue will be directed.
Secondly, I'm still asking myself how this ties in with the carbon tax set to come in to effect next year. This will see a tax placed upon these companies which is historically unprecedented but, in specific regards to the mining industry- how will these companies be able to pass on that tax to Australian citizens as minerals such as iron ore and coal are obviously commodities? Will it significantly effect the overall price of Iron and Coal on the global market?
The tax will only affect the mining of coal and iron ore, two of only a large number of minerals we export but notably, two of the highest exported minerals.
Will we truly see distribution of this wealth among us peasants? Maybe in hokey social programs although, I don't think anybody can complain about a national budget surplus.
I will continue looking in to and theorising about this.
Will it (as the opposition suggest) discourage foreign investment in Australia's mining sector? I'm not in a position to theorise, but if it did perhaps we would see some local initiative? Hopefully.
I just can't see how Julia Gilalrd's government would be going against her masters, what's in this tax for them that we're not hearing about? Perhaps it will come to light in future that it was a smoke-screen contractual tax entitling your BHP's of the world to stake their claim on Australia's resources?
Interesting.
www.bbc.co.uk
(visit the link for the full news article)
edit on 22/11/11 by Pirateofpsychonautics because: (no reason given)
