The Chamber of Minerals and Energy of Western Australia (CME) has welcomed reports the Australian Labor Party is re-examining their support for the inefficient and ineffective Minerals Resource Rent Tax (MRRT).
CME Chief Executive, Reg Howard-Smith said it was pleasing that some within the Federal Opposition have begun to recognise the threats to our international competiveness.
“The MRRT has added a significant compliance and regulatory burden to industry due to the complex administrative requirements,” said Mr Howard-Smith.
“CME has consistently expressed concerns the MRRT is administratively onerous and costly as well as ineffective, falling significantly short of delivering the genuine tax reform needed to ensure Australia’s ongoing international competitiveness,” said Mr Howard-Smith.
CME has always maintained a strong preference for retention of the current state royalty regime, administered by the State Government and with revenues flowing to the state in preference to federally imposed alternatives. The State Government has primary responsibility for resources project approvals and the provision of non-privately owned infrastructure which enable development of mining opportunities.
“A state-based royalty regime is best placed to ensure revenue and infrastructure investment is returned to the communities from where our mineral wealth is extracted,” said Mr Howard-Smith.
Reducing the cost of doing business and strengthening our international competitiveness remain key priorities for the resources sector. To that end, the abolition of the MRRT is a critical.
“The benefits of the resources sector to the WA community are pretty clear. However we need to recognise and address the cost challenges faced by industry, if we are to continue to deliver ongoing prosperity to the community,” said Mr Howard-Smith.
