Australia is famous for the rich natural resources , half of the country of its iron ore export once occupied the global iron ore exports. The mining industry is a pillar industry in Australia, a few years ago due to soaring global commodity prices, mining production not only for Australia brought huge profits, is attracting huge amounts of foreign capital inflow, created a large number of employment opportunities, also the Australian dollar and long-term strength, become a hot commodity currency. ”
Under this kind of background, Australia and March 2012 through the “mineral resource rent tax 2011” the draft law, and on July 1 officially implemented, the profits of more than $0.75 billion coal and iron ore Companies in the leasing of mineral resources tax levy, the tax rate is 30% of the taxable profits. This one caused an uproar. Although levy leasing of mineral resources tax to protect domestic resources, factors that limit the rational development, but in iron ore prices high prices of the industry under the background of the inevitably inevitably take advantage of taste.
Move not only lead to complaints from overseas buyers of iron ore, Australian domestic mining also intense reaction, because the unit cost rise will directly affect the market demand, resulting in the seller’s profit growth slowed down, so as to reduce the investment in the future, resulting economic speed reduction.
Australian Prime Minister Abbott in the year to participate in the election made it clear that, in order to revive the economy, the need to cancel the mineral resources tax and carbon tax. July 17, 2014, the abolition of the Australian meeting of the carbon tax bill from 2012, which shows that the Australian government in order to revitalize the economy has been a new breakthrough in the use of tax regulation.