The Rising Influence of Rising Affluence

[DewDiligence]

Australia’s mining tax passes parliament vote:

http://online.wsj.com/article/SB10001424052970204443404577054863236177058.html

The MRRT will apply to all companies earning more than 75 million Australian dollars (US$73.7 million) in annual profits from coal or iron ore production. It will be levied at an effective rate of 22.5% on all profits earned more than 7% above the long-term government bond rate—in effect meaning that it would only be paid on earnings above a 12% profit margin [assuming that the government bond rate is 5%].

The tax is slated to go into effect 7/1/12 after it is rubber stamped by Australia’s Senate.

The mining tax is separate from the proposed “carbon” tax (#msg-65052684).