OECD backs mining tax

THE organisation for economic co-operation and development (Oecd) has called on Australia to extend its controversial mining tax to all companies operating in the sector.
The body said the planned tax, which has proved very unpopular with miners, was “justified” and should also be extended to all commodities.
Under current plans, the tax will only hit the largest miners in some sectors.
Several mine firms had threatened to cancel projects because of the tax.
Former prime minister Kevin Rudd had set the Australian mining tax at 40% of miners’ profits.
However, following strong opposition from mining giants such as Rio Tinto and BHP Billiton, a compromise to set the rate at 30% for coal and iron ore miners was agreed in July with his successor, Julia Gillard.
Only firms with annual profits above A$50 million will be subject to the tax. – AAP