??? Xinhua News Agency, Canberra, July 2 — Today marks the eighth day since Australia’s new Prime Minister Gillard took office. She announced to the media that the government has reached an agreement with mining companies on the issue of resource taxes: the tax rate will be reduced from 40% to 30%, a move widely welcomed by most Australians.
??? This achievement is considered the first major test that Prime Minister Gillard has faced since taking office, laying a new foundation for her administration. The new tax is called the “Mineral Resource Rent Tax,” replacing the previous “Mineral Resource Super Profits Tax.” The Mineral Resource Rent Tax applies to iron ore and coal mining companies, while oil and gas companies continue to be subject to the existing Petroleum Resource Rent Tax policy.
??? It is reported that the new policy will reduce the number of affected mining companies from 2,500 to 320 and will take effect on July 1, 2012.
BHP Billiton, Rio Tinto, and Xstrata issued a statement welcoming the move, describing it as a significant advancement in the resource tax system. Some mining companies also noted that they hadn't expected the government to make such substantial concessions, calling it an important step in safeguarding the core interests of mining enterprises.
Gillard said that by tackling the challenges with a spirit of patriotism, we’ve achieved breakthrough progress in the negotiations, ensuring that Australians share more fairly in the wealth generated by our mineral resources.
??? She pointed out that the new resource tax policy will help enhance Australia’s attractiveness as an investment destination and boost Australia’s economic development.