One of the big ‘losers’ in the Henry Tax Review, the mining sector, may turn to IT to alleviate the impact of the potential tax hike.
The Federal Government’s Henry Tax Review has proposed a 40 per cent tax on above-average mining profits from 2012.
Without an increase in commodities market prices, this will have an impact on how a mining company does business going forwards, CSC CFO, Wayne Banks said.
“We see that mining companies will look at costs to try and preserve the shareholder value,” Banks said.
“However, we also see that enabling technologies could help save those organisations money. Supply chain management and ERP solutions will help in asset management, for instance.
“It’s too early for us to say for sure what’s going to happen, but we feel confident that from a straight IT perspective there will be increased investment going forwards.”
CSC is one of the most significant IT providers to the resource industry, with a customer history including BHP Billiton, Rio Tinto, Woodside Petroleum and Newmont Mining.
The Henry Tax Review has been welcomed by the IT industry in general, despite some calls by experts that there needs to be more tax reform than is currently on the table.
Click here for a run down on the proposed tax changes for small business.