Years ago the mining companies paid 1 in every three dollars they earned to the Gov, this has now slipped to 1 in every 7 dollars today, this is what is being addressed by Ken Henry, there were no companies running for the hills when they were paying $1 in $3 so i don't see them running any time soon, this tax is being blown out of proportion by the opposition and the big miners and it will all come out in the wash.
This will end up probably making them pay $1 in every $5 they earn once we all start getting the truth.
Was listening to an expert the other day and he said most of this was all blustering as the miners would not want to part with one red cent, and he also reiterated that they are paying a lot less now than they did years ago, lets face it they are taking our LNG and selling it to Japan and China for a few cents a litre and we have people who cant afford to heat there homes or fill a BBQ gas cylinder when it is charged out to us at about $3 litre.
I believe that the Henry review would have worked this tax regime out very carefully so that it would not damage the miners but make them pay a fair share of tax, lets wait and see what the truth ends up being when the dust settles and all the pushing and shoving is over.
KZL Price at posting:
55.0¢ Sentiment: Buy Disclosure: Held
