Julia Gillard Downsized Mining Tax

It has been reported that the Prime Minister of Australia, Julia Gillard decreased the tax imposed on mining companies, in order to succeed in getting the maximum support from them.

According to the sources, the tax on coal and iron ore earnings has been reduced to 30 percent, the lowest figure in the past few years.

Kevin Rudd was thrown out by Gillard few days ago because of his clash with the mining executives. The fight could have badly acted against Gillard.

It was also suspected that the clash will work in favor of the ruling Labor party and at that time, their chances of becoming the country’s first one-term Government boosted.

It is expected that the agreement will resolve the charges made by Tony Abbott. He warned that the ruling party is harming the mining industry, which became the main force to help Australia at the time of downturn in the economy.

The industry also incited Xstrata to recommence their work.

Andrew Hughes of Australian National University remarked that the future of Gillard is very bright. She has all the qualities that can help her in winning the elections. The agreement made by her between the business and the Government is receiving admiration from everyone.