Tax summit welcomed following Australian election result

Finance

The Association of Mining and Exploration Companies (AMEC) has welcomed a proposal to establish a tax summit in the wake of the Labor party’s return to government in Australia.

Prime Minister Julia Gillard’s party secured victory today after winning support from the independent lawmakers more than two weeks after the country went to the polls.

The debate about the mooted Mineral Resources Rent Tax (MRRT) on iron ore and coal producers was reignited when treasurer Wayne Swan said the government was “determined” to move ahead with the proposal.

In response, Simon Bennison, chief executive officer of AMEC said he backed a view of the independents that Ms Gillard’s government cannot claim a mandate on any policy position in regards to the proposed tax.

“We therefore welcome the proposal to establish a tax summit with all of the Henry Tax review recommendations on the table for open, transparent and constructive discussion,” Mr Bennison said.

“This provides a perfect opportunity to immediately withdraw the extra tax on mining and develop a long-term strategic tax reform programme.”

Mr Bennison said the recent debate over the extra tax has created significant uncertainty and confusion in the industry, and with potential investors in the decision-making process.

He added “the Gillard government should immediately implement appropriate initiatives that will restore confidence in the market and let the rest of the world know that we are open for business again”.