2022-23 pre-Budget submission to the WA Department of Treasury

Focusing on international competitiveness will encourage new or expanded project investment into WA. With $91 billion of planned or possible projects in investment pipeline across the resources sector currently and global foreign direct investment flows more than doubling from pre-pandemic levels in most OECD countries, there is a substantial opportunity for WA to attract and secure investment in response to increasing material-intensive demand through to 2030.

Cost certainty over the medium term will be essential to providing the industry with the necessary confidence to invest in future growth against the ongoing risks of supply chain disruptions, labour and materials price escalation and tightening of financial conditions. Furthermore, as a price taker in a global market, maintaining a low-cost operational base is fundamental to the competitiveness of the WA resources sector. A material change in this cost structure can significantly affect cash flows across the life of an asset, bringing forward the end of life and reducing the ability to use margins to expand existing projects or invest in new projects.

As Australia’s terms of trade are expected to decline, certainty in a stable, low-cost structure is needed. The government should not take for granted the current export-led fiscal strength. CME requests the government extend its commitment to no new or increased costs (royalties, taxes, levies, fees or other standing and specific charges) on business and industry.