is the market factoring in a mrrt?

  1. 9,438 Posts.
    Or are the odds of this government retaining power at the next election so remote that the market assumes it will be in for 18 months max before it is rolled back?

    ... or will Abbott renege on his promise due to the size of the fiscal black hole Swan will leave him?

    Miner says Tony Abbott won't abolish Labor tax
    Andrew Burrell
    From:The Australian
    August 02

    DIGGERS & Dealers chairman Barry Eldridge yesterday labelled the economic policies of the Gillard government and the Greens "extreme" and "superficial" as he opened the nation's biggest mining conference in Kalgoorlie.

    But Mr Eldridge also told the 2250 delegates in the West Australian goldmining centre he doubted a Tony Abbott-led Coalition would deliver on its pledge to abolish Labor's planned mining tax if it won at the next election. Governments always found an excuse for retaining a revenue stream, particularly one such as the mining tax, forecast to raise $7.4 billion in its first two years from next year.

    "Once a tax is introduced the trend tends to be to increase or expand the impact, and as an industry we must remain committed to ensuring that the Liberals deliver their promise," he said.

    The annual Diggers & Dealers conference is usually an apolitical event. But at last year's forum Mr Eldridge broke with tradition by urging delegates to vote Liberal at the looming federal election, describing the mining tax as "economic terrorism".

    In yesterday's opening address, the mining industry veteran devoted even more time to attacking Labor policies, including the planned mining and carbon taxes, as well as complaining that a hung parliament had caused huge uncertainty for business.

    The industry's grievances exist despite record commodity prices that are being fuelled by strong Chinese demand. The historic city of Kalgoorlie is booming thanks to a gold price above $US1600 an ounce, which has propelled companies to fast-track exploration and production plans.

    Mr Eldridge said the mineral resources rent tax was set to be legislated later this year with the support of the Greens despite the best efforts of the mining industry in opposing its introduction over the past year. "The extreme idealistic but frankly economically superficial policies that now have political substance while we have a hung parliament has to be one of the most worrying long-term issues Australia and the resources sector has faced," he said.

    "Let's try and get a situation where there is some separation between good government and political infighting. We have experimented with a hung parliament. It has not worked and is causing long-term uncertainty for decision-makers in Australia."

    The key speaker at Diggers & Dealers, US economist Todd Buchholz, questioned the wisdom of a carbon tax and other policies that penalised the industry.
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.