Mining giant BHP Billiton (LON:BLT) warned today that the Australian Government's plan to impose a new 40% resource rent tax on the industry would threaten future investment in the country and adversely impact the future wealth and standard of living of all Australians. BHP’s comments came as it predicted the new mining tax would take its total effective tax rate on profits earned from its Australian operations from around 43% currently to around 57% from 2013. This morning its shares were trading down 3.36% at 1957.50p.

The Australian Government is understood to be looking to raise around A$12 billion during the first two years of the new “super tax” in order to prop up retirement payouts for workers. The policy change comes in an election year for Australia but has nevertheless triggered heated debate in the country about how the new tax could impact on regional economies.

BHP pointed out that multi-billion dollar, long-term investments in the Australian resources sector had contributed significantly to the prosperity of all Australians. In the last three years the resources sector has contributed 18% of Australia's GDP, is the largest contributor to Australian export revenues at 42% and has been the largest contributor to corporate tax revenues, it said.

BHP’s chief executive, Marius Kloppers, said: “The stability and competitiveness of the tax system have been central to the investment in resources in Australia. If implemented, these proposals seriously threaten Australia's competitiveness, jeopardise future investments and will adversely impact the future wealth and standard of living of all Australians.”

BHP said it recognised that governments needed to review taxation policy and rates from time to time but said that any changes ought to take account of previous capital investments. Mr Kloppers said: “The Government has not defined all aspects of the design, implementation and application of the new tax, and until they are clarified we cannot be certain what the full implications for the industry will be. However, this significant new tax will have the effect of making investments in Australia much less attractive.”

In 2009 BHP Billiton paid taxes totalling A$6.3 billion in relation to its Australian businesses.

BHP wasn’t the only company concerned by the planned tax changes in Australia. Shares in Rio Tinto (LON:RIO) opened 3.67% lower at 3,255p and shares in Xstrata…

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