Miners hit back at the Government super profits tax

Australia's two biggest miners have launched a new offensive against the Government's super profits tax but Labor has hit back with claims industry bosses are prone to lying.

Labor remained on the back foot over its mining super profits tax even though a new survey showed the impost was winning support in the broader community.

The latest survey by Essential Research found total support for the tax was 43 per cent compared with 36 per cent opposition.

However, it was unlikely to deter the mining sector, which showed no signs it was in a mood to compromise.

BHP Billiton took aim over government claims Australia’s biggest miner only pays a paltry amount of company tax, while rival Rio Tinto warned the impost was damaging the nation’s investment reputation.

It was part of the continuing stoush over the tax as Parliament resumed yesterday.

Treasurer Wayne Swan opened up a new line of attack against the Coalition – which will wind back the tax if it wins government – claiming the Opposition’s levy for paid parental leave was much more damaging to the Australian economy.

Mr Swan told Parliament the tax was about a fairer distribution of Australia’s mineral wealth.

Mr Swan argued the Coalition’s 1.7 per cent impost to fund paid parental leave would reduce growth and investment, while adding to inflation.

"This side has a pro-growth, pro-
investment policy to leverage Australia’s strengths, but that side does not," he said.

Mining bosses were under fire too.

Mr Swan accused the big miners of peddling a number of myths, singling out claims every return above 6 per cent would pay the impost. "I regret to say this is a calculated and deliberate misrepresentation," he said.

"If you hear a mining executive saying it, they are either lying to you or they are ignorant – either way it should be of concern to their shareholders."

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