I agree it could be fairer, and better recognises Australia's mineral endowment as a public asset, however it could have huge negative impact on investors. I wouldn't generally be investing in companies where a current 10% royalty was expected to be higher than 40% RRT, so for me your comment about less tax when commodity prices are low is a moot point for me.
Just read last nights Eureka report, they had an article in which they suggested such potential tax changes (along with possibly ending the 50% CGT discount etc) as one of the three reasons for the current sell off.
Looking at my portfolio, i reckon AOE would be no.2 impacted, with BOW as no.1. AOE has some of it's future value offshore, and some downstream in electricity. My worst would be a WA miner with high margins, currently paying only about 5% royalties.
I hope Ya is right.
EL
AOE Price at posting:
$3.93 Sentiment: LT Buy Disclosure: Held
