A Labor representative comments that Prime Minister Kevin Rudd will negotiate the “muddy waters” surrounding his proposed super profits tax the same way he handled Australian's response to the global financial crisis.

The Labor is seeking an approval for a 40 per cent tax on resources “super” profits instead of business tax cuts, new infrastructure, and superannuation changes.

Parliament Secretary for Western and Northern Australia Gary Gray said if the Prime Minister has succeeded in pulling the country out of a major economic downturn, he can overcome the tax problem.

“He led a cabinet that put together the policy response to the worst financial and economic crisis our nation faced,” he said through an interview with ABC Radio on Tuesday.

“I'm sure that dealing with the tax and our current political woes will come quite naturally to both the prime minister and his cabinet.”

Mr. Gray also predicts the outcome if Opposition Leader Tony Abbot becomes elected during the election.

"There is equally no doubt that in corporate Australia, when they look at the tax rate under the Rudd government of 28 cents in the dollar, or under Tony Abbott of 32 cents in the dollar ... they begin to understand that substantial tax reform is preferable," he said.

Prime Minister Rudd will conduct a community cabinet in Western Australia to tackle issues regarding the super profits tax.

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