Australian Prime Minister Kevin Rudd will face questions in Labor caucus today on the handling of the Resources Super Profits Tax or RSPT. The government is standing by its proposed 40% tax rate and its application to existing mining projects in the country.
The last sitting of parliament a fortnight before the election is going to be dominated with talks about the RSPT. West Australian federal Labor MP Gary Gray thinks that it is important to get the debate settled in the next few weeks.
The uncertainty over the mining tax will have a damaging effect on the mining industry as per Mr. Gray who is also the Parliamentary Secretary for Western and Northern Australia. The mining industry is a key wealth generator and part of the national economy.
Many feel that he and Treasurer Wayne Swan have been pushing the tax despite its potentially drastic effects on the nation’s economy. The prime minister is set to expect some tough questions about the law, its suitability and its implementation today.