Monday, May 05, 2008

We Pay BHP $117million

A couple of weeks ago i mentioned the tax-breaks for huge mining companies. Well today i read that BHP Billiton is going to reap $117 million in tax credits during the 4 year expansion of one of its mines.

And as if that wasn't bad enough, it is estimated that the company's annual rebate from the Australian taxpayer is $138 million. Personally, i could think of much better ways to spend $138 million.


Unknown said...

I don't think its really fair to say we are 'spending' money on rebates. This is more of a discount on tax. Its a recognition that the tax statutes are not a blanket statement but should be interpreted in each situation.

Remember that the cheaper E10 unleaded fuel is cheaper because of rebates - essentially a lowering of the tax to encourage use.

david said...

Hi Frith

Yeah, it could be called a tax discount. Mind you, it's a 100% discount.

I guess my suggestion is that if there are going to be discounts and rebates, that they could apply to activities of greater merit than bulk fuel consumption.

Perhaps also to activities where it might make a difference. Whilst 117 million is a large amount of money to you and me, i'm not sure it makes too much difference to a company with an 18.4 billion dollar profit.

Your example of biofuels is a good one. Perhaps also removing the GST from public transport. Reduced tariffs for hybrid cars. I'm sure we could think up plenty.