Australian government moving closer to mining profits tax legislation

Australia moved closer to introducing a contentious 30 percent mining tax being eyed by other countries, releasing draft laws and seeking reaction from resource companies to legislation expected to be passed later this year.

The government unveiled the mining tax over a year ago but modified its plan before last August’ s elections after global miners including BHP Billiton , Rio Tinto , and Xstrata launched a public campaign against it.

Big miners and minority lawmakers are now broadly supportive and the legislation is expected to pass parliament and take effect on July 1, 2012.