Friday, June 25, 2010

What's the government's offer?

Katharine Murphy had the story Thursday. It got overshadowed.

"The government has resolved to change its controversial resources super profits tax so that it is similar in design to the existing petroleum rent tax.

It will use additional revenue generated by higher commodity prices forecast for petroleum, iron ore and coal to fund transition arrangements for the industry, which has fought tooth and nail against the proposal.

The government will leave minor players in the sector — such as sand, gravel and also commodities such as nickel — outside the super profits net.

It has backed in solidly behind the 40 per cent rate — but it will boost the level at which the tax cuts in and modify its original plan to carry the industry's losses."

It'll be Gillard's compromise in name only, unless she tweaks it.

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