Dear Mr Smith,

I am writing to ask that the government reconsider its mining ‘super tax’.
Small to mid-sized businesses such as mine, which supports the mining sector would not only be adversely affected but effectively this tax could see such businesses close down entirely.

This tax would undermine the strong economic foundation of this country and could represent a damaging turning point in the face of the world global financial crisis.

The resource industry is the engine room of the Australian economy and in Western Australia mining is its life-blood with the resource sector contributing billions in investment dollar revenue and thousands of jobs. The announcement of the super-tax has already created uncertainty in the sector with Rio Tinto’s Pilbara iron ore expansion plans being reconsidered.

The effective tax rate for mining giants such as BHP Billiton would increase upto 57% in Australia compared to rates of 23% in Canada and 27-38% in Brazil. If the super tax goes ahead, our mining industry will be by far the highest taxed in the world.

If the tax is passed in its current form Australia will lose its competitive advantage in the world stage and this will enable Canada and other countries to take investment away from Australia. And where the investment goes, the projects go and the jobs go too.

I find it hard to understand how the Federal Government can put forward such a proposal having not considered the adverse financial and economic implications such a move would have. I hope that the government will listen to the voice of the people and scrap this outrageous proposal before more damaged is done.

Yours sincerely,
Kashif Saleem