Pelican, I have no problem in generating more tax from the minerals, none what so ever.

The mechanism is ther to do just that, it's called royalties.

If governments increased royalties, it would result in a better deal for the owners of the minerals, us. Why the new tax?

My thinking is that they won't do this as th likes of Qld and western A will get the lime share of this and those in th other states perish that thought.

Now NSW and Victoria have snow fields.

Do they share thier unique assett, or more so, it's rewards with the other states. No!

This option is there and can be implemented tomorrow.

To me it's a no brainer!

You have more hope of getting a super profits tax out of a bank than a royalty. That is where the difference is. Change mining for bank or any one else that makes obcene amounts of profit. A targeted tax, so where is the problem.

*We are talking SUPER profits here which still sees large mining companies making profits in the billions.*

Pelican, wether profits are in the billions or not, as nothing
to do with it. Its got to be in relation to capital employed.

Its going to take BHP something like 30 billion $ to develop
Olympic Dam.

Why should they not earn billions on that kind of investment?
After all, even your bank account pays 5% or so, with no risk
at all.

If they can't earn 10% after tax on their money, better to not
take the risk in the first place.

You can well claim that they are your minerals. So go wander around
the desert, trying to find them. Billions are lost each year, doing
exactly that.

If Govt is going to grab most of the profits, when they do find
minerals, there would be no good reason to spend money on exploration.
As it is now, Govt lands up with over 40% of
the profits, without any risk, just by putting their hand out.
Hardly reason for complaint

Yabby, your comment brings me back to my thoughts when this topic was first raised a year or more ago.

I said than, and I say now, if government wants a larger share of profits, then it is they who should. Pay for the exploration. Nothing found, no return.

The trouble is that now the miners are making big bucks, all of a sudden this government wants to get their grubby hands on it. Where were they hen coal was $35 per ton!

The true motivator for this logic in that this incompitent government has piss all ou money away, and some, and the miners are what they view as an easy target to get some back.

They won't dare touch the banks, as they know they can simply unplug the computers and hop on a boat to anywhere else.

They, the government are just cowards, not wanting to admit they have failed time an time again. They have caused more unrest and damage in four years than all other government have in my life time.

And 579, royalties are a state issue, that's why they don't want to go there because it won't plug the hole these fools have caused.

Yabby, if a company spends $30b (which I find hard to believe, frankly) then that is a cost isn't it?

But if they do spend $30b then they clearly expect a better return than the amateurs who run QANTAS, I'd have thought.

So there is no problem with taxing their actual profit, surely?

The rate might be a matter of continuing debate, I do agree, but not the actual idea of taxing them?

They'd have to earn a lot before $30b turned into profit.

The problem with royalties seems to be the eagerness with which all state governments rush to the bottom to reduce their ability to raise taxes, to appease greedy bastards and snub their noses at the vast voting public- sorry, no taxes so no roads, rail and hospitals, no schools, no public sector.

No state governments might be a goer.

*So there is no problem with taxing their actual profit, surely?*

TBC, there is no problem with taxing, there is a problem of the
rate. If Govts want most of the profits, why bother investing such
huge amounts in the first place?

For there is always a risk. A risk that commodity prices drop,
a risk of technical problems, etc. 30 billion$ invested at 6%
in the bank deposit book, could indeed be the far more profitable
option, with no risk.

Olypmic Dam is a huge project. Its going to take them 5 years just to
remove the soil and rock above the mined area.

The thing is, when Govts want more then half of all profits, without
taking any risks at all, sensible investors start to look elsewhere.
That is what the original super profits tax was doing, thus the
protest by the miners.

Anyone can go mining in Australia. Just take your multi million
$ drilling rig, head for the desert and drill away. Most of the time
you'll land up with nothing but expenses.Yet the moment you do find
something, some will want to take most of it off you. Hardly fair
in my book.