Prime Minister Julia Gillard announced today in a press conference in Canberra the revisions involving the resource super-profits tax.

From a headline rate of 40 percent, the mineral resources levy will be reduced to 30 percent, applying to iron ore and coal. The tax on oil and gas projects will still be 40 percent, the government said. The original proposal initiated by Rudd was a 40 percent tax on all resources.

The Gillard government also increased the threshold at which the tax kicks in from 5 to 6 per cent to 12 per cent.

"Today we have a breakthrough agreement that moves Australia forward with certainty," Gillard said. "We have been stuck on this question for too long. It will end uncertainty and division."

The revamped tax deal will reduce affected companies from 2500 to 320.
The Australian currency gained 0.4 percent to 84.69 U.S. cents as of 8:53 a.m. in Sydney from yesterday in New York. A rise in stock performance of the mining sector is also anticipated.

Big miners BHP Billiton Ltd and Rio Tinto Group said they were reassured by the ruling of the Gillard government.

The deal is Gillard's first triumph since she usurped the leadership from Rudd last week.