The mining industry in Australia condemned the move by the State Government for an addition 40 per cent Resource Super Profits Tax - a move that could cost thousands of local jobs and affect the standard of living for the citizens.

Yesterday, the State Government revealed the long-awaited Henry review, including the recommendations to implement new tax mining profits that would generate $3 billion during the first year and $9 billion in 2013-14. The mining tax will commence on July 2012.

Media reports have stated that the federal government also added more conditions, which are said to be favorable to the miners to gain more support.

Starting July 1, 2011, the new Resource Exploration Rebate will allow companies to receive a rebate for exploration expenses, which may give a huge boost for companies, especially those in geothermal prospecting.

The government will also slash its company tax rate from 30 per cent to 29 per cent in the middle of 2013 and further lowers it down to 28 per cent the following year. The government will also provide a credit for state-based royalties.

Marius Kloppers, chief executive of BHP Billiton, argued that if the tax law is implemented, it will put Australia in jeopardy in terms of competitiveness and its future investment.

"It will adversely impact future wealth and standard of living of all Australians," Mr. Kloppers said.

"The Government has not defined all aspects of the design, implementation and application of the new tax, and until they are clarified, we cannot be certain what the full implications for the industry will be. However, this significant new tax will have the effect of making investments in Australia much less attractive."

The chief executive of the Minerals Council of Australia, Mitch Hooke said the tax package is considered a "revenue grab" and "an unprecedented double-tax."

Mr. Hooke added that the miners should work with the government and understand the high-risk of the resource rent tax.

Katie Lahey of the Business Council of Australia said there is a pressing need for the industry to have a consultation with the government to get a better understanding of the "complex" rent tax.

Small mining companies on the other hand, will suffer more, according to David Flanagan of Atlas Iron.

''If you have a really large capital project you get a lot of shelter from that capital. A company like Atlas, which doesn't have a lot of capex, doesn't get that shelter,'' he said.

However, Scott Haslem, chief economist of the Aussie-based UBS, explained that the government's approach to redistribute wealth to the entire economy is a "sensible approach."

Haslem adds that the new rent tax will not hinder growth.