Gillard Is Likely to Tax Miners, Morgan Stanley Says
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Australia’s new Prime Minister Julia Gillard is still likely to introduce a tax on resources profits following negotiations with mining companies over the levy that helped the premier oust her predecessor, Morgan Stanley said.
Gillard was closely connected to former prime minister Kevin Rudd’s policy decisions, which allows little prospect for a big change, Morgan Stanley strategist Gerard Minack said in a telephone interview from Sydney. BHP Billiton Ltd. and Rio Tinto Group slid in Sydney trading on speculation Gillard will pursue the tax. The stocks rose yesterday after she pledged to consult companies on the plan.