Australia mining tax clears final hurdle

Author: Al Jazeera, Published on: 20 March 2012

Australia's parliament has passed laws for a new 30 per cent tax on iron ore and coal mine profits after a bruising two-year battle with mining companies...The tax will affect about 30 companies, including global miners BHP Billiton, Rio Tinto and Xstrata, and aims to raise about $11.2bn...in its first three years. "This is indeed an historic day for economic reform, and an historic day for a fair go in Australia," Treasurer Wayne Swan told parliament..."Australians know how important the mining industry is, but they also know that we can only dig up and sell the resources once," said Gillard [rime Minister]. "The Minerals Resource Rent Tax will deliver Australians with a fair return on the resources they own 100 per cent."...The tax...is designed to spread the benefits of Australia's resources boom to other sections of the economy by funding a cut in the company tax rate, higher payments into pension funds, and $6.3bn (A$6 billion) of infrastructure spending.

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Related companies: BHP Billiton Rio Tinto Xstrata (part of Glencore)