So you think that it's ok for mining companies, who are 83% foreign owned, to continue paying only 14% company tax. The banking sector pays double that.

Of course they should be paying royalties, they need to buy what they are digging up. That is completely separate from paying tax. You don't excuse a retailer his taxes because he had to pay for his stock, so why would you be doing that for miners?

Remember, of the $51 billion of mining profits in 2009/2010, $42billion accrued to foreign investors. And they shouldn't paying be more than 14% tax? Meanwhile Australian businesses earning much less are paying much more.

Further, the mining sector only employs about 220,000 workers, not much more than the banking sector (which pays 30% corporate tax). They don't provide as many jobs as they'd have you believe. Manufacturing employs about 1 million, Retail closer to 1.5 million.

So, to put it bluntly, the mining sector is paying less than its fair share and therefore should pay more.

David,

Please explain your assertion that mining companies pay 14% tax.

Welcome David and your task in answering the question asked of you will take little effort.
We may some times clash but I welcome informed comment such as yours.
A rare event in threads such as this

Simply dividing the tax paid, into the gross income produced is. OT how the system works.

I too am curious how David comes to his conclusion that miners pay 14% tax.

Is that 14% after deductions I wonder.

It's easy to miss represent figures.

As for foreign investors, they don't get a share of the royalties and, the shares they buy are there for all to buy.

We just choose not to take the risk.

They do, and deserve the returns for doing so, as they own part of the company and they also share in the losses.

We simply want a larger share but without the risk.

Sorry, it doesn't work that way.

"The mining industry pays corporate tax like every other industry. However, the average rate of corporate tax paid by the mining industry in 2008-09 was 13.9 per cent, substantially below the theoretical 30 per cent tax rate. One reason for this is the generous tax deductions available to the mining industry, particularly in relation to research and development and accelerated depreciation provisions for capital expenditure."

-the Australia Institute, "Mining the truth", September 2011

Fortescue Metals had never paid ANY Corporate Tax until this year because of clever manipulation of these tax breaks/deductions.

14% is not sufficient tax on companies making massive profits from Australian resources. The tax breaks are fair as they encourage investment and not all mining companies are making super profits. But those that are should pay a fairer share of tax, like the rest of us.

The Religion Industry pays no tax whatsoever, and they too should pay their 'fair share'.

What amounts to a fair share is an important discussion though, for miners, for corporations, for individuals, for everyone.

Of course, if the world was serious about taxes and crime, the tax havens of the world would be closed down, and the Swiss system of hiding crimminal wealth would be exposed for what it was, an aid to human rights abuses and common crime of high order.

As for mining royalties, well, as always, state governments and our foolish politicians enjoy nothing better than a race to the bottom with each other, so instead of increasing royalties, they have been busy reducing them, or at least not increasing them in line with the increased value of the product.

The folly of people like Crean on Q&A telling those people in regional Oz that they had to 'earn their way' to a bypass and needed to get private industry in to build it was typical of the present attitude of all politicians.

You'd think that the ALP would be able to clearly articulate the link between taxes and services, but they are so intent on being the LNP that they no longer have any idea what they were elected to do.