On Monday 3 May our PM and Treasurer announced increased taxes on the mining industry – ostensibly to help pay for higher superannuation for all.
So far this week many $Billions have been knocked off share prices right through the materials sectors as the market digested the new conditions they must operate in. The already high risk mineral exploration industry was made even higher risk at the stroke of a pen as future profit projections must now be trimmed.
I wonder if our political masters allowed for the fact that thousands of super funds invest in the mining and exploration sector already – and their investments have taken a solid loss this week.
Anybody has the right to invest in shares so if you think the mining sector is making easy money – one answer is to invest in it. The Govt could have done that and the Govt could form a National Mining Co or buy some existing companies – if it thought it was all too easy a pathway to make money. I recall a few decades ago Labor dabbled in that area through a Cabinet Minister, Rex Connor.
Viv Forbes of the Carbon Sense Coalition has a good article on the new tax.
Apologies for my OT post.