The Federal Government's proposed resource super profit tax became another controversy for British investors as they worry that other governments around the world might follow and implement their own tax.

A fund manager said that Australia is taking hold of half of the money earned by Australian companies and it might trigger other countries to decide to implement their own rules as well.

"The reaction among investors has been a lot like the shock that went through tobacco stocks around the world when Australia said it was banning branding on cigarette packets.

"Doing that to cigarettes in Australia was not such an enormous deal, but what really worried the industry was the danger that once Australia has done it, the idea would be picked up around the world."

Richard Buxton, head of UK equities at Schroders – one of the biggest holders of London-listed shares in firms involved in Australian resources like Rio Tinto, has expressed his worry that other resource-rich countries may copy Australia's new tax.

Mr. Buxton explained the Rudd Government has laid out the tax proposal In a positive light that the resource sector are strong that it can handle such a tax.

Unfortunately, it's indicative of how far we've come in the decade-long boom in commodity prices that governments feel justified in looking to increase their tax take from the industry," he said.

"Commodity bull markets almost always eventually witness this stage of increased taxation, or even worse, nationalisation of resource assets.

Mr. Buxton is also worried that Australia's move for a resource tax may be replicated in socialist or capitalist countries or those countries that see tax as an easy source of tax venue with an absence of on voters.