BHP Billiton (BHP) is the world’s largest diversified resources company and a major player in the commodities market. It is currently Australia’s heaviest weighted stocks in the share market with a market capitalization of $125 billion.
The government and the big miners have agreed to amend the resources super profits tax, delivering a major victory for BHP Billiton (BHP) and Rio Tinto (RIO).
Under the new tax regime, the headline rate will fall from 40% to 30% and will only apply to iron ore and coal.
The rate at which the tax kicks jumps from around 6% to 13%, and all oil, gas and coal seam methane projects will now fall under the existing PRRT regime, which levies projects at 40%.
Some of the other major mining players like Newcrest Mining (NCM) wouldn’t be affected by the tax given their large concentration in other commodities.
In return, the government advised that the company tax rate will now fall to 29% instead of the 28% originally proposed, and it will scrap the exploration rebate.
BHP shares have been slumping since late June and last closed at $37.09 a share.