BHP profit justifies mining tax, says Swan

SYDNEY (AAP) - Mining giant BHP Billiton's record annual profit shows why the federal parliament should back the government's proposed mineral resources rent tax, Treasurer Wayne Swan says.
BHP on Wednesday posted a full year net profit of $22.46 billion, up 85.9 per cent on the previous year, after lifting its revenue 35.9 per cent on the back of higher production and commodity prices.
Mr Swan said BHP's 2010/11 result highlighted the importance of the proposed Mineral Resource Rent Tax (MRRT), which the government wants to start in July 2012 after striking a deal last year with Australia's biggest miners.
The resources tax will fund a cut in the corporate tax rate from 30 per cent to 29 per cent by taxing coal and iron ore miners at higher rates.
"This result shows just how important it is that the Liberals don't succeed in blocking our resource tax reforms, which will deliver a boost to superannuation and substantial tax relief for businesses which aren't in the mining boom fast lane, especially struggling small businesses," the treasurer told AAP.
"Results like this expose the huge economic risk posed by (Opposition Leader) Tony Abbott who thinks the mining sector pays too much tax, but other struggling sectors should pay higher company tax."
The coalition is opposed to the MRRT.
Mr Swan said Mr Abbott should explain why he was standing in the way of tax cuts for struggling small businesses.