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People have parked their competitive issues and raised the bar and said: no, this is part of how the resource industry operates in WA. Howard-Smith says despite Australias incredibly low sovereign risk rating, compared with its direct competitors in iron ore, the increased risk caused by unilaterally changing a state agreement, combined with an additional cost that he put at $3bn a year, will make Australia a less attractive place to do business. Household fees and charges are going to have to increase substantially if you dont have a new revenue source Brendon Grylls Both mining companies already pay, at a conservative estimate, US$19 a tonne on royalties, taxes and other charges. He also says theres a strong argument that the special lease fee is no longer applicable to the agreements as they operate today, because it was imposed to help the state government recoup the set-up costs of establishing towns and roads to support new mining projects, and those towns are no longer company-controlled. Its a familiar playbook for the mining industry, which used many of the same arguments, with great success, to oppose both the resources super profits tax and the mineral resources rent tax. In both cases the campaign played a significant role in the downfall of a prime minister, first Kevin Rudd in 2010 then Julia Gillard in 2013. The whole story of the MRRT and Rudd and Gillard was that it worked, says Jeffrey Wilson, a senior lecturer in international political economy at Murdoch University. They basically brought down the prime minister on this. So if it worked then, theyll just give it another go. In a paper in the Australian Journal of Political Science , published this month, Wilson analysed the campaign against the MRRT and found there was no evidence the tax posed a direct threat to the sustainability of the mining industry. Thats particularly true in WA, he says, where mining companies occupy some of the tallest towers in Perths St Georges Terrace business district.