$94 billion has still been wiped from the stock market value over the past week duue to various factors like the greece problems , australian internal new reform issues and the wall street market performances.
Billions wiped from Australian stockmarket
It fell 6.6 per cent for the week on fears that Europe’s debt crisis will hit global markets and affect growth of the world economy. It has been the market’s worst week since the height of the financial crisis in 2008.
However, the booming Australian resources industry has come under attack from politicians who are threatening to impose huge new taxes. Prime Minister Kevin Rudd has proposed a ’super tax’ on resource profits in order to pay for rising health care costs for an aging population.
The tax which, would be equal to 40% of resource gathering firms’ profits, is proposed to begin in July 2012 and would raise an estimated $8 billion a year from 2013-14, which is about 0.7 per cent of national income.
The tax has not become law yet and is strongly opposed by many conservative politicians. The new tax would “eventually choke the goose that’s laid the golden egg for Australia,” said conservative Tony Abbott. “Australia’s future depends on the bulk carriers traveling to Asia.”
Abbott announced that after rescinding the resource rent tax, a future Liberal government would not be able to match Labor’s planned reduction of the corporate tax rate from 30 to 28 percent. The decision indicated the opposition’s determination to win the backing of the mining companies, even at the expense of other sections of big business, which have long demanded corporate tax rate cuts to bolster Australian capitalism’s international competitiveness. The Australian resource sector is currently booming, driven by record commodity prices caused by China’s industrial expansion. Much of the rest of the “two track” economy, however, especially manufacturing, is in recession or near-recession.