NSW Budget: miners critical of $70m tax hike
Miners issued warnings in response to the NSW 2012 Budget. It includes a $70m increase to taxes across the next four years for miners, which representatives said risks future expansion of mining across the state.
NSW Minerals Council said royalties paid by miners to the state government totalled nearly $1.5bn in 2010-11 and are forecast to increase to $1.9bn in the next financial year. This figure will rise to more than $500m in additional costs in 2015-16, the council said.
Council chief executive, Stephen Galilee, said the industry is disappointed that miners in NSW faces additional costs. The government seems unable to decide if it is willing to support or oppose mining in NSW, he said.
“NSW risks losing significant mining royalties with the draft Strategic Regional Land Use Plan casting a dark cloud over future industry growth.
“With this additional tax pain the NSW mining industry wants to see some real gain through practical on-ground outcomes including more rapid project approvals and clearing of the backlog of around 50 stalled mine development proposals, many relating to modifications and extensions of existing mines.”
Association of Mining and Exploration Companies (AMEC) regional manager in NSW, Bruce Edwards, said members are concerned about the introduction of two new levies for small and emerging explorers.
“The $13m administrative levy for all explorers and miners plus the levy to fund the continuation of the New Frontiers geosciences program are more disincentives to explore for minerals in NSW.
“The introduction of these new levies will only result in an increase of red and green tape, administrative costs and delays for an industry that is already highly regulated and taxed.
The global economic uncertainty has impacted NSW with $5.2 billion less in GST revenue than forecast last year.
“Despite this hit to the bottom line and a reduction in federal funds for infrastructure, the NSW Budget 2012-13 delivers a 17% increase in infrastructure spending over the next four years, compared with the last four years.”