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Sydney - The Australian government signalled on Sunday it is open to compromise on a new tax on resources profits which has enraged the mining industry, but insisted the 40% headline rate will not change.
Resources Minister Martin Ferguson said the government wanted to consult with the nation's most valuable export industry on the so-called "super profits" tax because there were technical issues to resolve.
"The headline tax rate is correct," Ferguson said. "But there is room for compromise, as I've said on a number of occasions, with respect to how you apply the proposed tax regime."
Ferguson said the government would await a report from its consultation committee on whether the point at which a "super profit" was reached - currently deemed to be when a company's profits pass six percent of current earnings after rebates for some expenses are deducted - would change.
"I am not prepared to suggest that there is any movement but we will wait the outcome of those discussions," the minister told Network Ten's Meet The Press programme.
"I say there are different issues from different companies' point of view, different industries' point of view. We will sit down and assess the outcome of that process of consultation."
Resources companies have launched a fierce campaign against the proposed tax, arguing it was damaging to Australian investment and jobs and would cut their ability to compete with foreign miners.
But the government has insisted that it is a fair measure which will allow it to lower company tax and fund pensions, thereby ensuring the benefits of the Asia-driven mining boom are spread more evenly around the country.
"I think it's time the mining companies of Australia got used to the idea that they need to return a fairer share to all Australians, for the resource which all Australians own," Prime Minister Kevin Rudd said Sunday.
- Sapa-AFP
Resources Minister Martin Ferguson said the government wanted to consult with the nation's most valuable export industry on the so-called "super profits" tax because there were technical issues to resolve.
"The headline tax rate is correct," Ferguson said. "But there is room for compromise, as I've said on a number of occasions, with respect to how you apply the proposed tax regime."
Ferguson said the government would await a report from its consultation committee on whether the point at which a "super profit" was reached - currently deemed to be when a company's profits pass six percent of current earnings after rebates for some expenses are deducted - would change.
"I am not prepared to suggest that there is any movement but we will wait the outcome of those discussions," the minister told Network Ten's Meet The Press programme.
"I say there are different issues from different companies' point of view, different industries' point of view. We will sit down and assess the outcome of that process of consultation."
Resources companies have launched a fierce campaign against the proposed tax, arguing it was damaging to Australian investment and jobs and would cut their ability to compete with foreign miners.
But the government has insisted that it is a fair measure which will allow it to lower company tax and fund pensions, thereby ensuring the benefits of the Asia-driven mining boom are spread more evenly around the country.
"I think it's time the mining companies of Australia got used to the idea that they need to return a fairer share to all Australians, for the resource which all Australians own," Prime Minister Kevin Rudd said Sunday.
- Sapa-AFP
