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Car Insurance and Resource Rent Tax on Australian Mining Companies

So what does car insurance have to do with mining companies?

Apart from the fact that the mining companies have fleets of cars and some rather large fleets of vehicles that cost millions of dollars and need to be insured. Have you ever seen one of the big “Tonker trucks” for want of a better name hauling ore from the mine site to a processing plant or rail head?

The wheels of these massive vehicles alone are head and shoulders above the height of a tall man. Just insuring the tyres alone against malicious damage would cost a small fortune!

Australia has just released a report to overhaul our tax system. In all, there were 138 recommendation's on what we need to do to upgrade our taxation system. There are winners and losers and one of the big 'losers' are the mining companies who have previously enjoyed some serious tax perks and indeed, start up exploration mining companies still will, and this is only fair that they do so. No one begrudges them this and we seriously want to encourage entrepreneurship in the mining industries. After all, Australia is world renowned for our innovative capabilities.

The 'big losers' are those well established multi-national mining companies who are largely owned by shareholders of other nations profiting from our resources. There are obviously a lot of “Mum and Dad” Australian investors in these mining companies too and indeed many of our big superannuation financial institutions own substantial shareholdings which is wonderful.

Once upon a time, not so long ago, there was the big Australian Company called BHP which started life as an exploration venture back in 1885 and struck it rich. Over time and good management, it developed into a huge mining company in Broken Hill; which is in the outback of New South Wales. A few years ago they merged with Billerton Mining which originally was a Netherlands based mining company and who now owns 40% of BHP Billerton. Needless to say, BHP Billerton is not impressed with the new resource rent tax.

The reasoning behind imposing a rent resource tax on multinational mining companies I believe, as do many other Australians, to be a fair thing. This new tax income is designed to fund the superannuation of retiring Australians for years to come so they can continue to enjoy a reasonable standard of living. The natural resources of our country belong to all Australians, not just the mining companies, their shareholders or their over-paid CEO's.

But all these over-paid CEO's, Company shareholders and indeed the mining companies themselves all need to insure their cars and vehicles. No matter how the new rent resource tax will impact their shareholder profits, they still need good vehicle insurance policies to minimise losses.

If this rent resource tax on these oligarchy mining companies is not implemented, few Australians in their retirement will be able to afford cars let alone insurance on them even if they get the best free car insurance quote possible.