Australian PM defends resources tax in Perth

13:46, June 09, 2010      

Email | Print | Subscribe | Comments | Forum 

State Western Australia (WA) will get the lion's share of investment funds from the resources tax to build new roads, railways and ports and boost the state's economy, Australian Prime Minister Kevin Rudd said on Wednesday.

Rudd has flown into Perth, the capital city of WA, to sell his government's controversial Resources Super Profits Tax (RSPT).

Rudd told 6PR Radio the tax reforms would strengthen WA's economy by cutting company tax and making tax breaks available for tens of thousands of small businesses, and provide revenue to build infrastructure.

On top of that it would provide extra superannuation for 700, 000 workers in WA, Rudd said.

The government aimed to set up a specific investment fund to build more roads, railways and ports in WA which would in turn boost mining and business.

"The infrastructure needs of this state are vast and on the existing tax base cannot be funded," Rudd said.

"We say the sector of the economy most able to share a greater part of the burden for funding our infrastructure needs for the future is in fact our most profitable mining companies."

Rudd said WA and the other major resource state Queensland would receive the lion's share of the Resources Super-Profit Tax infrastructure investment proceeds.

He said independent analysis for treasury indicated the tax changes would result in mining investment going up by four or five percent and employment going up by seven percent over time.

Rudd said he respected the mining industry's point of view and consultations would continue in the weeks ahead.

Mining company bosses have laid on a protest meeting to greet Rudd when he attends a press club luncheon later on Wednesday.

Mining magnate Andrew Forrest, head of Fortescue Metals Group will meet Rudd privately to discuss the controversial 40 percent tax on resources super profits. The government's controversial resource super profits tax was also likely to dominate discussions when Rudd attends a community cabinet meeting in suburban Como on Wednesday night.

Rudd has met with BHP Billiton chief executive Marius Kloppers in Sydney on Tuesday. A recent opinion poll suggested Labor party is in danger of losing seats in Western Australia because of the on-going tax debate.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Giant red lantern lights up in Tiananmen Square to celebrate the coming National Day on Oct. 1. (Xinhua/Li Xin)
  • A ceremony is held in Taipei, southeast China's Taiwan, on Sept. 28, 2011, to commemorate the 2,562nd birthday of Confucius (551-479 BC), a Chinese thinker, educationist and philosopher. (Xinhua/Wu Ching-teng)
  • The world's first Boeing 787 Dreamliner for delivery arrives at Haneda airport in Tokyo, capital of Japan, on Sept. 28, 2011. The Boeing 787 Dreamliner, whose buyer is All Nippon Airways (ANA), will implement a flight of ANA on Oct. 26 from Tokyo's Narita Airport to Hong Kong in south China. (Xinhua/Ji Chunpeng)
  • A Libyan National Transitional Council (NTC) fighter shows what is believed to be human jawbone found inside a mass grave near Abu Salim prison in Tripoli, Libya, Spet. 27, 2011. The NTC on Sunday said they had found a mass grave containing the bodies of 1,270 people killed by Gaddafi's security forces in a 1996 massacre at Abu Salim prison in southern Tripoli. (Xinhua/Li Muzi)
  • Rescue workers and local residents search for survivors after a building collapsed in old Delhi, India, Sept. 27, 2011. At least 10 people were killed and 35 injured when an old three-storey building collapsed. More than a dozen people are still feared trapped under the debris, police said. (Xinhua/Partha Sarkar)
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
Hot Forum Discussion