Friday 15 Oct 2021 | 01:23 | SYDNEY
Friday 15 Oct 2021 | 01:23 | SYDNEY

The RSPT and sovereign risk, again


Mark Thirlwell

28 June 2010 13:30

I noted some time back that an important part of the sovereign risk element of the Resource Super Profits Tax, at least as far as the miners were concerned, was the potential demonstration effect of a higher resource tax take on other countries which might follow Australia. Well, to the extent that there has been any demonstration effect to date, it's been rather different to the one that I had in mind in my original post.

Granted, we still have to see what a new PM (and an upcoming election) will ultimately deliver. But in the meantime, the signal that's gone out so far from Australia regarding the politics of resource taxation has turned out be more miner-friendly than taxation-friendly.

Incidentally, did anyone else find the image conjured up by this headline a little bit unsettling?

Photo by Flickr user Tony Spencer, used under a Creative Commons license.