Miner giant BHP Billiton suggested that proposed resources super profits tax by the Federal Government should only apply to new investments and not for existing ones.

BHP Billiton chairman Jac Nasser also explained to shareholders on Monday that the new tax reform should not hinder any progress of the resource industry with other industries.

Mr. Nasser pointed out that the company is not fully against Australia's tax system, but any reform must be conducted on sound principles and not totally destroy incentives to “keep investing in the resource industry.”

"Any reform must only apply to new investments: not to existing investments," he told shareholders.

Additionally, any reform should not disadvantage the resources industry compared to other industries in Australia, and it absolutely must not disadvantage the Australian resources industry compared to other countries."

BHP said the resource super profit tax would see Australia's profit increase from 43 per cent to 57 per cent, making the Australian resource industry as the highest taxed in the world.

Canada currently has 27 per cent while Brazil has a 38 per cent on tax rates.

Mr. Nasser said the proposed RSPT will threaten Australia's competitiveness, put future investments at risk, and put the standards of living of all Australian's in peril.

He added that Australia may be looked upon as a less stable and less competitive place for long term investments.

BHP will pursue more talks with other shareholders regarding the RSPT.

BHP shares were trading at $1.15 lower, by 2.98 per cent at $37.49 on Monday.