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Miners aren't pulling weight: Gillard

Resources Minister Martin Ferguson says he is open to how the proposed resource rent tax is applied, but he and Julia Gillard this morning both defended the 40 per cent figure.

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Source: AAP


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Deputy PM Julia Gillard said on Sunday that multinationals like BHP Billiton and Rio Tinto pay just 13 per cent company tax - and it's not enough.

Domestic miners pay an effective company tax rate of just 17 per cent, and overseas

companies pay even less, at around 13 per cent, she told the Nine Network .

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She says that's the truth, and it's not a fair share.

Adding that Labor's determined to go through with its super profits tax, she said people should be sceptical of the miners' fear campaign that it'll kill the industry and drive investment and jobs offshore.

The mining industry is fiercely opposing the planned 40 per cent tax on super-profits.

Ferguson: Tax level will stay, but there's room for compromise

Resources Minister Martin Ferguson says he is open to how the proposed resource rent tax is applied, but says the proposed 40 per cent slug will stay.

Mr Ferguson said the tax level would stay but he indicated the government was open to some changes to the levy.

"The headline tax rate is correct but there is room for compromise as I've said on a number of occasions with respect to how you apply the proposed tax regime," he told Network Ten on Sunday.

Asked about raising the planned profit threshold from 6 per cent, Mr Ferguson declined to rule out that possibility.

"We'll consider the outcome of consultations, they are genuine consultations - that is one of a variety of issues raised with me and the Treasurer."

Queensland Premier Anna Bligh has asked Treasurer Wayne Swan to consider raising the profit threshold to 11 per cent.

The proposed 6 per cent level is modelled on the 10-year government bond yield, which is considered a safe investment.

Meanwhile, Swan's told News Limited that ordinary Australians being taxed around 30 cents in every dollar are being short-changed by the miners who get a massive discount on the company tax they pay because of generous concessions.


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