Federal Treasurer Wayne Swan has admitted some mining companies will pay more under Labor's proposed resources profit tax but insists overall the change will grow the sector.
The Rudd government plans to tax super profits made from non-renewable resources at 40 per cent from July 2012, raising an additional $9 billion a year by 2014.
"Some companies will pay a bit more of that there is no doubt, because they have been given very generous treatment over recent years because of the failures of the royalty regime," Mr Swan told ABC Radio on Monday.
"But overall this will grow the mining industry because it is a predictable tax and it is an efficient tax."
The treasurer said the existing royalties regime - which focuses on the volume of minerals extracted - punished new mines "and those mines which may not necessarily be making a profit in any particular year".
He denied the government's response to the Henry tax review wasn't big enough or bold enough.
"In terms of the broad economic impact this is a very significant package, probably more significant than anything in living memory," the treasurer said.
Fundamental reform of resources taxation was being coupled with historic reform of superannuation and company taxation.
Mr Swan said a 40 per cent profit tax already existed "in a number of projects" in Australia including the Gorgon gas development in Western Australia.
But he refused to rule out negotiating a lower rate for the new super profits tax.
"We've outlined the design of the tax, we've said within the design of the tax we're happy to sit down and talk about all of the transitional arrangements."
Mr Swan reiterated higher superannuation and company tax cuts were dependent on the new resources tax getting up.
"We can't deliver this package without delivering the resource super profits tax."
Prime Minister Kevin Rudd has also defended the mining tax.
Mr Rudd said the redistribution of wealth was justified and long overdue, adding that much of the income generated by mining the resources which were owned by the Australian people went offshore.
"Over the last decade the mining companies generated $80 billion in higher profits. At the same time, governments on behalf of the Australian people, received only an additional $9 billion," Mr Rudd told ABC Radio on Monday.
"BHP is 40 per cent foreign owned, Rio Tinto is more than 70 per cent foreign owned. That means these massively increased profits... built on Australian resources are mostly, in fact going overseas."
Mr Rudd said he expected the mining industry to mount a political campaign against the reforms.
"Of course there'll be threats of project closures and the rest," he said.
But he said reforms were needed to underpin the current strength of the economy and build for the future, and also make sure Australian families get their fair share.
Chief executive of the Australian Industry Group Heather Ridout, who also sat on the Henry review committee, has also backed a tax on the industry.
"I never liked putting up taxes on business ... but I think in this case we do need to make a judgment as a community whether we are taxing this industry in a proper way," she told ABC Radio.
But she said the mining industry should lobby hard to get the best possible deal.
"The industry has every right now to get in and advocate hard on the rate, the design of the system ... and try and get the fairest deal they can."
Big miners are unhappy, saying the existing tax regime is equitable and changes will lead to job and investment losses.
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