Australia mining tax plan may help Canada-minister

* Australia plans 40 pct mining profit tax from July, 2012

* Canada may win competitive advantage after Australia tax

TORONTO, May 4 (Reuters) - Australia’s proposed new mining tax could prove advantageous for Canada by attracting investors seeking lower tax jurisdictions, Canadian Finance Minister Jim Flaherty said on Tuesday.

“I quite frankly need to review it further. I want to make sure I understand exactly what they’re doing,” Flaherty told reporters.

“If it is what it appears to be, a significant tax increase, that’s another competitive advantage for Canada. We’re reducing our corporate taxes.”

Australia’s government has angered its booming resources sector by unveiling a new tax on mining projects from July 2012 under a sweeping pre-election tax overhaul which will also boost pension savings for workers. [ID:nAUTAX]

The plan to levy a 40 percent tax on profits could deter mining investment in Australia, and analysts have said the Australian proposal could make Canada a more attractive venue for investment in metallurgical coal. [ID:nN04204293]

Flaherty said he doesn’t believe in raising taxes and said the Canada’s revenues continue to grow because the economy is growing.

Reporting by Ka Yan Ng; Editing by David Gregorio