Queensland government says mining tax won’t hurt the state
The Queensland government has announced today that it is prepared to take action on the federal government's new mining tax plan should it pose a threat to the state's resource industry as central authorities gave assurance that the tax is necessary to keep mounting mineral incomes from leaving Australia.
According to ABC, Queensland Prime Minister Anna Bligh vowed that her government will closely study the new measures as the federal government sent notice to the mining industry to open their books and conduct modelling on the proposed new super profit levy.
Ms Bligh said that she is on the lookout to determine if the new tax will discourage further investments from mining companies, as she asserted that the state government will work hard to protect the expansion of Queensland's mining base.
She added that as problems arise, they'll be brought to the attention of Canberra as she hinted that some aspects of the plan could prove helpful for the state.
Ms Bligh said that the tax reform will require careful study and evaluation so as to fully understand its effects on Queensland, adding that "It does mean that we can protect the royalties that fund many of the projects and services that regional Queensland communities need."
State treasurer Andrew Fraser told ABC that they are looking to negotiate the details of the new tax, which the Queensland Resource Council cautioned as likely to endanger $100 billion worth of fresh projects lined up for the state.
Mr Fraser countered that resource rent tax could prove beneficial for the mining sector especially if it is well-designed as he is expecting that the federal government will leave bigger rooms for debate and negotiation.
He stressed that "the tax design must overcome the questions around investment certainty and future job generation and it's important that we don't have this debate in absolutist terms on both sides of the equation at the moment."
Mr Fraser said that his focus at this time is to fully understand the details of the tax reform and getting an industry like the liquefied natural gas to appreciate the measures amidst its involvement in a $50 billion industry that employs thousands in regional Queensland.