CHANGES to the mining super tax are increasingly likely as the industry kicks off an advertising blitz demanding a Federal Government backdown.
The Federal Government was committed to the 40 per cent tax rate but gave strong indications yesterday it was open to change in the tax's design and delivery.
Resources Minister Martin Ferguson made the strongest comments about a possible "refining" of the tax.
Mr Ferguson said while the tax would be implemented, genuine consultations had been under way between the Government and mining interests.
"There will be a profits-based tax in Australia," Mr Ferguson said.
"The headline rate is going to be 40 per cent but there are refinements that can be made to make the tax more appropriate and balanced from a mining industry point of view."
The concession comes as the resources sector makes good on a threat to campaign strongly against the tax.
The Minerals Council of Australia's advertisements to air today, feature a young woman and a self-funded retiree questioning the wisdom of the tax which puts pressure on prices by "making raw materials more expensive".
"New taxes might be good for the Government but I can't see how they are good for me," the woman says.
"All I see is the value of my shares dropping," says the self-funded retiree. "I've retired and these are the investments I need to live off."
Prime Minister Kevin Rudd re-iterated his commitment to the tax after leaving a church service yesterday morning.
"I think it's time the mining companies of Australia got used to the idea that they need to return a fairer share to all Australians, for the resource which all Australians own," he said.
Deputy Prime Minister Julia Gillard said mining companies were getting taxation rates as low as 17 per cent tax for domestic miners and 13 per cent for multinationals.
"The next time the Australian people hear a fear campaign coming at them from the mining sector they might want to consider those figures," she said, adding that
the Government wanted miners to to continue to earn good profits and mining workers to earn good wages.
She urged miners to get involved in consultation about the tax.
"Get in the process, we don't need the fear campaign, we do need the consultation to work the implementation details of these taxation arrangements through."
Deputy Liberal leader Julie Bishop said the Federal Government had already spent the money it would receive from the mining tax.
