The Chamber of Minerals and Energy of Western Australia (CME) welcomes funding for the Exploration Development Incentive by the Australian Government in the 2014-15 Federal Budget.
“CME is pleased the Treasurer acknowledged the valuable contribution made by the resources sector to the ongoing prosperity of Australia,” said CME Chief Executive Reg Howard-Smith.
“Funding for the Exploration Development Incentive has long been supported by the resources sector and will deliver a significant return to the economy,” said Mr Howard-Smith.
The Exploration Development Incentive will allow investors to deduct a proportion of mining exploration expenditure against their taxable income.
“All resources projects begin with a discovery and to that end, CME welcomes the funding for the Exploration Development Incentive, which honours a Coalition election commitment,” said Mr Howard-Smith.
“To establish a future pipeline of projects we rely upon increasing the current level of exploration activity here in Western Australia,” said Mr Howard-Smith.
CME is pleased a recommendation from CME’s Investment in Resources Sector Infrastructure report, released in February 2014, is being implemented. From 1 August 2014, the Budget package of $5 billion Asset Recycling Initiative will aim to unlock infrastructure assets. The proceeds from future privatisations will be reinvested into the Asset Recycling Initiative for new productive infrastructure.
CME supports the funding for additional infrastructure such as the $866 million for the Perth Freight Link.
“This investment will deliver important productivity improvements for users of Fremantle Port,” said Mr Howard-Smith.
It is pleasing that the Australian Government has not added to the cost burden faced the resources sector in Western Australia.
Mr Howard-Smith said that industry has been dealing with significant increases in the cost of doing business.
“The resources sector needs to remain internationally competitive if it is to continue to deliver benefits to the Australian community,” said Mr Howard-Smith.
The Western Australian resources sector looks forward to working collaboratively with the Australian Government to abolish unnecessary additional costs and compliance burdens faced by the resources sector such as the Mineral Resource Rent Tax and Carbon Tax.
