The Business Council of Australia has called on the Rudd government to ditch its planned super profits tax on the mining industry and start all over again with a comprehensive public consultation.
Relations between the government and the mining industry have soured as both sides accuse each other of using bullying tactics in the row over the resource super profits tax.
The business council wants a new consultation process open to a full range of tax options on the resources sector.
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"The breakdown in the process around the RSPT has damaged Australia's international standing," council president Graham Bradley wrote in The Australian Financial Review on Monday.
He warned there were long-term consequences for investment and growth prospects unless industry concerns were addressed.
"The best alternative now for the government is to embark on a revamped process for the development and design of a more efficient and less damaging approach to taxing resource profits."
