RSPT advertising war

THE Association of Mining and Exploration Companies is launching a radio advertising campaign against the resources super-profits tax while the Rudd government is diving into the public purse to launch its own $38 million advertising blitz.
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Blair Price

The government campaign might be in violation of the guidelines it set on advertising since winning office in 2007.

The “public information” campaign includes a statement that by the end of the mining boom the Australian people were receiving $1 for every $7 of mining profits.

Rio Tinto Australia managing director David Peever told the Australian newspaper that the government ads ignored the corporate tax paid by the mining sector and said the company’s effective tax rate was 35% over the past 10 years.

The newspaper also reported a push for a Senate inquiry as the government was accused of hiding the advertising plan from Parliament last week.

Meanwhile, copper and uranium explorer Encounter Resources managing director Will Robinson said a government promise to refund 40% of losses under the mining tax proposal created an incentive to fail and could have unintended consequences, according to the ABC.

Full details of the proposed 40% tax on profits from extracting resources are still being worked out.

The final design paper for the RSPT is scheduled for a late 2010 release.

Both the Queensland Resources Council and Minerals Council of Australia are running their own advertising campaigns against the tax.

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