The Chamber of Minerals and Energy of Western Australia (CME) is wary that taxation changes announced in the 2013-14 Federal Budget will impact negatively on the health and future development of the major resource projects in Western Australia
“While CME is pleased that pre-Budget speculation about changes to the diesel fuel rebate weren’t announced this evening, changes to exploration expenditure and the thin capitalisation rules are of concern to the resource sector,” said CME Chief Executive Reg Howard-Smith.
“CME believes that any amendments which bring about further costs to the resources sector, need to be re-examined. Industry is already dealing with significant increases in the cost of doing business, particularly in Western Australia,” said Mr Howard-Smith.
“It makes no economic sense to place further barriers in front of the strongest industry in the country when the long run aim is increased revenues,” said Mr Howard-Smith.
Mr Howard-Smith said the resources sector needed to remain internationally competitive if it is to continue to deliver benefits to the community. When combined with decreasing ore grades and new minerals and energy rich regions emerging around the world, the level of competition in the global resources sector is increasing for Western Australia.
“Taxation changes such as those announced tonight may have unintended consequences for the future growth and prosperity of Australia. It is in national long term interest to continue to support exploration within Western Australia.
“Governments must do everything possible to protect our reputation as a stable and reliable environment in which to do business,” said Mr Howard-Smith.
CME supports the establishment of the Alternative Pathways Program for apprenticeships as a mechanism for delivering more flexible pathways for 4000 Australians completing an apprenticeship. The industry-driven nature of this initiative is a welcome addition to budget skills measures.
“Securing a highly skilled workforce remains a challenge for many companies in the resource sector,” said Mr Howard-Smith.