Sydney index gains ground as Australia collects mining tax revenues

<p>Sydney’s main stock index has gained ground as Australia collects mining tax revenues.</p>

Sydney's main stock index has gained ground today (February 8th), as Australia collects the revenues from its controversial mining tax.

However, the A$126 million (£80 million) payout was less than anticipated, as it had been forecast that revenues for the six months from when it was first implemented on July 1st 2012 would see revenues of A$2 billion in the year to June 30th 2013.

The tax imposes a 30 per cent tax on iron ore and coal mining firms in the country, with large mining companies opposing the levy, saying it will hurt their competitiveness and affect future investment in the sector.

Treasurer Wayne Swan commented: "It's clear revenues from resource rent taxes have taken a massive hit from the impact of continued global instability, commodity price volatility and a high dollar."

At close of play in Sydney today, the ASX All Ords index rose by 0.6 per cent to 4989.4 points.

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