Hi all,
We hear alot about resource taxing and Royalties but rarely do we hear what the Royalties really are and how they are adjusted
by the Commonwealth Government to account for the miners' GST refunds:
Let Moorookamick tell you:
WA: iron Ore reyalties constitute about 20% of WA's income.
Royalty rate: 7.5% on fines = $966 mil
GST Impact........................= (86 mil)
Net income for WA.............= $880 mil.
(source WA Budget 2013)
Is this enough?
IMO, no, Even though WA intends to raise Royalties in 15-16 by $180 mil, the royalty rate should be
at least 15% with Commonwealth supervision of production levels to ensure optimum export price.
At present Aussie producers have a monopoly buyer in the form of the Chinese Communist State
who supervised Chinese domestic buying and, arguably, manipulates price by phoney stockpiling.
Our 3 major Iron Ore miners are essentially foreign owned via direct equity, debt or a combination of both
and most of the profits from these enterprises are telephoned overseas starving us development capital and neccessitating
our big 4 Banks to go overseas and borrow so that we can live in the style that we think we can afford!
And in the meantime, Madam Rheinhardt and her clan are fighting about control of their $20 billion nest
egg compliments of our low Iron Ore Royalty regime...........poor things...............( I thought I saw her in an Op Shop
last week or was I dreaming....!)
