World Business

Oz govt urged to listen to average Aussie over tax debate

(Xinhua)
Updated: 2010-06-14 11:34

CANBERRA: A coalition of national organizations of Australia, representing social services, workers, environmental and consumer interests, on Monday has called for the voices of ordinary Australians to be heard in the mining tax debate.

The group said controversies over the proposed resources super profits tax (RSPT) was being dominated by taxpayer-funded government advertising, and that of powerful vested mining interests.

But the Australian Council of Trade Unions (ACTU), Australian Council of Social Service (ACOSS), Australian Conservation Foundation (ACF) and Consumers' Federation of Australia on Monday urged the government not to baulk at necessary reforms to make the tax system fairer.

Without the tax, it would be left to ordinary wage earners to make the shortfall in government revenue, the groups said in a statement.

ACTU secretary Jeff Lawrence said the big miners had hijacked the tax debate.?

"Mining magnates are putting at jeopardy improved superannuation savings for the workforce of more than 10 million, billions of dollars of infrastructure spending that our nation needs, and a cut to the company tax rate for 770,000 businesses," Lawrence said.

"The RSPT misinformation being spruiked by the big miners is a disgrace."

ACOSS chief Clare Martin said a tax on resource profits was a fair and efficient way to raise revenue.

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"Australia needs a stronger tax base, including a national tax on use of Australia's mineral resources, to fund services for the community especially as our population ages," Martin said.

ACF spokesman Charles Berger called for the government to green up the final design of the tax.

"The government should ensure there will not be tax refunds to mining projects in the event of environmental disasters, and should phase out subsidies for exploration and fossil fuel intensive activities as the Henry Review recommended," Berger said.

The federal government wanted to impose a 40 percent tax over the resources and mining industry.

Prime Minister Kevin Rudd has been under pressure to give ground to the miners, as polls showed the battle is hurting Labor party in the electorate.