In a major breakthrough for the Australian government, Prime Minister Julia Gillard managed to reach an agreement with the mining industry. The 40% tax proposed by Mr. Kevin Rudd on all resources has been modified to a 30% tax on iron ore and coal while it stays as 40% for oil and gas projects.
The news came as a welcome relief to the mining community which has been under considerable strain due to the proposed tax. Many smaller concerns were in danger of being shut down and a lot of miners were worried about becoming unemployed.
However the major redesign and the concessions granted to the mining industry by Ms. Gillard has made it possible to reach a compromise on the tax. The old Resources and Super Profits tax has been renamed the Minerals Resources Rent Tax.
The changes which have been implemented will cause to the Government to lose out on about 1.5 billion dollars of expected revenue. However all major industry chiefs from Rio Tinto, BHP Billiton and Xstrata have called it a positive outcome for the Australian mining community.