New PM: The Government will now Negotiate on Resource Super-Profits Tax
One of the first tasks on the agenda for Australia’s new Prime Minister Julia Gillard will be to open up negotiations with the mining industry over the proposed resources super-profits tax (RSPT).
The ongoing controversy between industry and the government over the RSPT, was a key issue in the instigation of the leadership spill. Under Kevin Rudd’s leadership the government had refused to negotiate over the tax.
In her first press conference as Prime Minister, Julia Gillard said that the government will pull the advertising pushing the government’s case and asked that the Mining industry to reciprocate.
BHP was quick to respond, suspending their advertising campaign over the proposed new tax and saying that they were “encouraged by the comments of new Prime Minister Julia Gillard, that her government will open the doors for negotiation with the objective of achieving consensus”.
This marks a new direction for the proposed super-profits tax. The mining industry has welcomed the new initiatives, citing the positives from the full engagement of all interested parties in the discussions over the new RSPT tax.
The mining index jumped higher on the market open today and has managed to hold on to its gains up 1.6% in the last trading.
By Michael Hevern
Head of Research
