Wednesday, May 5, 2010

Energy company warns on Supertax

An energy company in Queensland has warned that any tax rise in the mining industry will be passed on to Australians.

Prices will rise as much as 25%, or more. There is no way that costs will be absorbed by the industry, and they will pass it on.

This is not only going to affect the power bills, but will also increase the price of petrol.

Gee, thanks Kevin, for looking after working families.

I can't find any links at the moment, but it was on the 6 o'clock news on Seven.


bruce said...

I'm a freetrader, but considering that our resources, our nation's main advantage, are subject to foreign ownership, charging a 'rent' tax seems a way of maintaining our national advantage in the long term.

Ownership of mineral resources is crucial future stuff. Mining rights have always been ambiguous compared to normal business property ownership.

That said I wish anyone but Kev had proposed it.

Wand said...

We live in a global economy for resources and the RRT will simply drive investment overseas and increase our costs at home! What brilliant fools we have in Canberra!

So here is the latest.

And for comparison, the total tax on the mining industry in Canada is 23% (corporate 20% + royalties). Compare that to Australia (currently 38% - corporate of 30% + royalties) and planned, after Kevin Ruddd's great new tax, to be 58%! So I wonder (not) where the investment money will flow?

So once again this government in Canberra is meeting out death and destruction to everything it touches. This latest theft imposes a huge sovereign risk to doing business in Australia.

kae said...

Hi Wand, Bruce

Check today (it's not up yet), for an interview with a Canadian who welcomes Rudd's supertax - it will drive investment over to Canada.

They're quite happy about it.


The mining companies already pay royalties, and tax to the government.

Wand is correct, it will just decrease investment in Australian exploration and mining and increase costs to Australians for our own mine-related products.

stackja1945 said...

Tax for Oz ok. But tax for Kev to waste why?

Merilyn said...

The electricity companies are going to charge us 36% for the use of electricity, now on top of that they want to charge us another 25% so they will be back up to close to the 64% they wanted to charge in the first place, that is just pure evil!
All this without waiting to see how the market goes.
Rudd HAS to go!