The first problem with this new tax, is that it shows that our
present politicians have less integrity then a common hooker.

For they have been pleading and cajouling miners into investing
in large megaprojects. Now that miners have spent their money,
Govt changes the rules.

At least the common hooker tells you up front what its going to
cost you and usually sticks to her word. Not so with our
present bunch of politicians.

Troy, in my view your are one the money. It is the future projects a that are at risk, as the current projects have to be completed as they (the miners) have simply come to far to stop now.

Yabby also make a point I have raised before in that the government has no right to demand more now, given the fact that they sat back and watched the miners spend billions locating the minerals, assessing thier values and deciding to go ahead.

There is no doubt that the people own the minerals, but, if the people want more of the rewards, then the people must contribute to the production.

As it stands, the government wants a larger slice of the pie, but without any risk attached.

Like any business, if you want to be a silent partner, you must contribute finacially, and it is here that the government has got it wrong.

However, if the government wants to invest in mining, then by all means share in the profits, but, they must also be prepared to share in the losses.

Governments, like economists, are mostly made up of uni graduates that have rarely taken a finacial risk in thier lives.

Furthermore, they are not 'risk takers' or 'job creators' and it would appear that thier supporters are in the same boat.

Using the same logic of the Mining Companies (and it's only the big transnationals that seem to be complaining)- if we CUT the amount of tax they pay, then most of our goods would become cheaper and our Superannuation Funds would soar in value.

Maybe we should just take away all the concessions they get instead.

A profit is still a profit. Even 60% of something is better than 100% of nothing at all.

If they aren't interested any more they should hand back their leases so they can be given to somebody else.

So what if they change the tax rules? The government changes things for me every Budget time.

Great article Troy. Although your tax analysis is obviously simplistic, it gives a far more realistic and relevent assessment than that put forward by Treasury and Wayne Swan.

I find it appauling that senior public official can so blatantly make false or misleeding claims about mining companies. BHP and Rio Tinto have responded in depth showing their tax rates are already far higher than the 13-17% claimed by Treasury and Mr Swan.

The issue has now become one of integrity. The government and Treasury don't have any.

Listening to treasury boss Dr Hennery, he comes across, to me, as one of those business hating academic public servents. You know the type, a few Communistic tendances showing. Most definately a distinct animosity towards business surfacing at the press conference.

No doubt he believes that those nasty miners should be happy to give up their proffits to those nice a academics, & public servants, they are the established elite, after all.

Any of you who think there are not plenty of mining opportunities in places other than Australia are just, kidding themselves. If Rudd stays with his ambit claim, there won't be any reason for companies to open new mines in Oz.

It does sound as if, as usual, he is going to water, & stepping back a bit. Why, oh why did the idiot not think for a few minutes, before shooting his mouth off.

*So what if they change the tax rules? The government changes things for me every Budget time.*

Err Wobbles, there is a bit of a difference. Frankly, the 3$ tax
that you pay does not really matter and you live here. But when
billions of $ are involved and overseas and local investors are
pleaded with, begged and encouraged to invest in Australia, as
the Govt is reliable and x is how much tax will be paid, only
then to change their minds, because investors were foolish enough
to trust them, it comes down to our pollies having less integrity
then your average hooker, who at least keeps her word about her
charges.