Two Australian mining giants have delivered negative views regarding the Australian government's plan to impose a new resource rent tax.
A BHP Billiton statement said that imposition of this new tax would result in an increase in the total effective tax rate on the group's profits earned from its Australian operations from around 43 percent currently to around 57 percent from 2013.
BHP Billiton chief executive officer Marius Kloppers said, "If implemented, these proposals seriously threaten Australia's competitiveness, jeopardize future investments and will adversely impact the future wealth and standard of living of all Australians."
Meanwhile, Xstrata plc said that the Australian government's plan to impose a structural change to the taxation of the Australian resources sector, which will result in significant and disproportionate additional taxation on the industry, could well curb the large-scale, long-term investments required to develop Australia's natural resources for the benefit of all Australians."
Mick Davis, Xstrata plc chief executive, commented, "Mineral investments require long-term certainty over fiscal arrangements. The government's intention to change the basis on which existing mining investments were entered into undermines Australia's reputation as a stable investment destination."
The government is expected to consult with the industry regarding this new tax proposal soon.