Australia Loses $60 BN in Mining Revenues

Australia will collect about $60 billion less in mining tax over the next ten years than previously predicted thanks to the changes made in the proposed mining tax last year prior to the elections. The treasury figures say that the original unhampered tax would have collected Australian $99 billion between the financial years of 2012/13 to 2020/21.

However with the pre-election revisions made to the mining tax the government will earn only Australian $38.5 billion during the same period. The original tax proposed by the then Prime Minister Kevin Rudd was vehemently opposed by the mining industry and saw demonstrations all over the country which even led to his ouster.

Then Julia Gillard took over from him and agreed to a deal with the three mining giants which considerably watered down the tax. Greens Leader Bob Brown says the Government gave away billions to mining companies. Based on the new mining tax a spokesman for the Treasurer Wayne Swan said that the redesigned tax will generate significantly less revenue.

The opposition resources spokesperson Ian MacFarlane said that the latest figures damaged the Government’s argument for the tax. He said that it highlights that this whole tax has been poorly thought through. The estimates are rubbery and the Government really has got no idea on what sort of income it's going to get, particularly in the out years.