FMG reveals framework for deal with Rudd

Immediately prior to Kevin Rudd’s departure, FMG and a number of other companies, had apparently been working with the former Prime Minister on a possible framework for handling the Resource Super Profits Tax (RSPT), which was to be released as a discussion paper to the mining industry.
The key aspects of the revised position included:
. To reduce the impact of retrospectivity by doubling the value of existing capital recognising a transition to a new tax regime;
. An immediate write-off for new capital;
. The taxing point for projects moved to the point of mineral extraction;
. Full transferability of super mining tax liability across projects within a tax paying group;
. Increase of uplift rate from 6 per cent to 15 per cent (FMG will continue to argue for an uplift of over 10 per cent above a company's borrowing costs to protect small mining companies); and
. Removal of 40 per cent Government guarantee - recognised as no value to the finance or mining industries.
It was during the meetings with Rudd that Forrest declared the original framework of the super mining tax was dead and buried. The company said in a statement that this had been FMG's view since the tax was announced, and was reinforced by the discussions with the former Prime Minister and his office.
Forrest said Gillard's Government would need to improve on the key aspects of prior negotiations to achieve any forward progress of the super mining tax with the industry.
“It should never be forgotten that the existing design of the super mining tax meant Australia would pay more than double Canada's tax rates, which would have seriously harmed the Australian economy as capital relied on to build Australian jobs would have fled the country,” Forrest said.
“It would be a great shame if the finalised outcome of any negotiations between the Gillard Government and the mining industry were anything less than what was achieved while Mr Rudd was PM, otherwise his departure will be recognised as futile.”