The Chamber of Minerals and Energy WA (CME) welcomes the release of the 2026-27 Federal Budget, which highlights the difficult economic circumstances facing Australia during a period of rising global instability.
Stronger than expected commodity prices, which helped deliver corporate tax revenue $8.1 billion higher than forecast at the time of the last Budget, was not enough to offset recent expenditure growth that tipped the nation into an $28.3 billion deficit in FY26.
Further underlying cash deficits totalling $122.2 billion are forecast across the next four years, illustrating the importance of growing the national economy to keep more Australians in jobs and sustainably fund services like Medicare and the NDIS.
The Budget contained no changes to taxation settings for resources projects, a move welcomed by CME Chief Executive Officer Aaron Morey.
“Australian resources companies already face one of the biggest taxation burdens in the world. To return to surplus we need to build a bigger economy, not bigger taxes,” Mr Morey said.
“Turbocharging investment into the resources sector is Australia’s best chance to get the Budget back into the black.
“The Federal Government should be commended for prioritising Australia’s reputation as a stable and reliable trading partner above short-sighted calls for short-term revenue hits.
“Mineral and energy exports were the bedrock of the Budget surpluses delivered in 2023 and 2024 and our commodities continue to provide the foundations for future success.”
Mr Morey stressed the critical role of exports like iron ore, LNG and gold in the pursuit of liquid fuels and fertiliser amid the unfolding Middle East conflict.
“Our national security increasingly relies on being a stable and trusted commodity exporter,” Mr Morey said.
“The world is rewarding reliable trading partners and Australia must lean into that advantage.
“As global energy markets tighten, maintaining operations across the resources sector must be treated as a national priority.”
The WA resources sector alone accounts for around one fifth of Australian corporate tax receipts, contributing $25 billion in FY25, while workers in the nation’s highest paying industry are also an important source of income tax.
That revenue helped fund new cost-of-living measures, including a temporary cut to fuel excise initially costed at $2.55 billion and a new $250 Working Australians Tax Offset for all income earners.
As revealed by Prime Minister Anthony Albanese at CME’s pre-Budget breakfast, $45 million has been committed to expedite negotiations on bilateral agreements for States to both assess and approve major projects on behalf of the Commonwealth.
“Delays kill projects. Speeding up and simplifying approvals is the most important plank of the Federal Government’s productivity agenda,” Mr Morey said.
“We’re at a make-or-break stage with the National Environmental Standards that underpin the EPBC reforms currently being negotiated. If we don’t get those right, the opportunity for a bilateral agreement disintegrates.
“CME continues to push for workable standards and a bilateral between WA and the Commonwealth by the end of the year.”
Key measures relevant to the resources sector in the Budget include:
- Australian Fuel Security and Resilience package – More than $10 billion to ensure fuel and fertiliser security.
- Westport – An additional $552 million to 2030-31 for Stages 1A and 1B planning and enabling activities for connecting Anketell Road. Another $350 million for Kwinana Freeway upgrades.
- Regional housing – $500 million for enabling infrastructure to support housing delivery in regional Australia, as part of a broader $2 billion announcement.
- Streamlining approvals – $227.4 million to modernise environmental information and systems to streamline environmental approvals ($105.9 million), progress bilateral assessment and approval agreements with states and territories ($47.6 million), streamline foreign investment approvals ($47.5 million) and support states and territories to develop bioregional plans ($26.4 million).
Media contacts:
Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719
Natasha Mutch n.mutch@cmewa.com / 0435 383 382