Australia's Swan: Government Committed To Profits Based Mining Tax

24th Jun 2010 23:17

MELBOURNE (Dow Jones)--The Australian government is genuine in its call for negotiations with the resources industry over a new taxation regime but remains committed to applying a profits-based tax to the sector, Treasurer and newly-appointed Deputy Prime Minister Wayne Swan said Friday. "We are committed to a profits-based tax. The mining industry say they are committed to a profits-based tax as well... We are genuine in our desire to negotiate with the industry," Swan told Australian Broadcasting Corp. radio. Julia Gillard was sworn in as Prime Minister Thursday after Kevin Rudd quit the role in the face of a leadership challenge and in her first press conference as Prime Minister called for a truce in the battle between the mining industry and the government over its planned new tax "It is the same tax that is on the table, it is a profits-based tax," Swan said. When asked if the 40% tax rate, as outlined by Rudd in his proposed Resource Super Profits Tax, would remain Swan said: "The 40% is used with the PRRT (petroleum resource rent tax), for example but I am not going to go into a discussion about all of the details. We're going to go into these negotiations again about all of the details with good faith ...and resolve this matter." The mining industry has agreed to suspend a fierce campaign against the RSPT, which it had argued would put investment in the Australian mining sector at risk and cost jobs. -By Lyndal McFarland, Dow Jones Newswires; 61-3-9292-2093; [email protected] (END) Dow Jones Newswires June 24, 2010 18:17 ET (22:17 GMT)