BHP says change 'profit tax' or scrap it

BHP Billiton Ltd says the federal government's planned resources super profits tax
(RSPT) should be scrapped if its shortcomings can't be changed.
In a letter to shareholders on Friday, chairman Jac Nasser said a substantive
redesign of the tax was necessary "and if this can't address its fundamental
failings, it should be abandoned".
Mr Nasser suggested altering the RSPT so that the tax rate is varied according to
the commodity mined "because the investment and financial characteristics of
individual minerals are different".
As it stands, the RSPT applies only to profits.
Queensland Resources Council chief executive Michael Roche said on Thursday that
mining companies might warm to the RSPT if the tax rate varied for different
commodities.
Mr Nasser also said the new mining tax should be applied on the value of minerals
alone "and not unintentionally penalise investments in infrastructure, processing or
other support activities".
He said BHP Billiton was "very disappointed that consultation has not been possible"
between the mining sector and the Rudd government on the RSPT.
Prime Minister Kevin Rudd on Friday hosed down speculation a compromise on the RSPT
was imminent following talks in Perth on Thursday with Andrew Forrest, the chief
executive of iron ore miner Fortescue Metals Group Ltd.
Mr Rudd said he thought there was still "weeks and probably months" of consultation
with Australia's big mining companies ahead for the government.