Calls to back the sector that powers the surplus

Peak mining groups are driving home the need to nurture investment in the sector in the face of a Federal Budget surplus that owes a great deal to the nation's resources industry. The Queensland Resources Council (QRC) said it was clear that strong demand and high prices for resources, particularly coal and gas, had made a major contribution to the improvement in the government’s bottom line. Chief executive Ian Macfarlane said the Budget confirmed an estimated $41 billion improvement on Treasury forecasts from just over six months ago. “Tax revenue from resources exports will contribute 20 per cent – or $8 billion – of the extra $41 billion now expected next financial year, which has proved the difference in the government being able to deliver a $4 billion budget surplus,” he said. The QRC is urging governments to focus on policies that encourage the essential private investment required to develop resources projects for the benefit of all Australians. “It is more important than ever that there is policy consistency and stability at both the State and Federal level to give investors the confidence to go ahead with new projects and jobs," Mr Macfarlane said. Minerals Council of Australia chief executive officer Tania Constable said the Budget surplus did not have to be a one-off. "The predicted fall in mining investment over the coming years can be reversed," she said. "More than ever, Australia needs an internationally competitive and productive minerals industry given the economic headwinds and the urgent need to create a net-zero emissions future."As the Australian economy continues to face hurdles, and pressure remains on government spending, the Federal Government must do everything in its power to foster economic growth by nurturing investment." She said policy settings to support business growth and investment were largely absent from the Budget. "The record tax paid by Australian mineral companies in 2021-22 ($41 billion) is the result of the massive investment by the minerals industry that occurred a decade ago. It underpins the Federal Government’s rapidly improved budget position this year," she said."Going forward, Australia’s vulnerability to competition from resource-rich economies will only grow as they seek to seize the opportunity to supply the minerals and metals needed to achieve global net zero emissions."Businesses, large and small, are the wealth creators of Australia not government. All Australians have a stake in the success of Australian mining." Association of Mining and Exploration Companies’ (AMEC) chief executive officer Warren Pearce described the decision to alter the Petroleum Resource Rent Tax to levy greater revenue from LNG projects as setting a concerning precedent for Australian industry. "... As do a range of foreshadowed regulatory measures, that are likely to threaten greater investment in mining and mineral exploration,” he said. “Ultimately, the Budget’s forward estimates anticipate a return to deficit and a continuing fiscal challenge.” “Re-investing some of the revenue taken from the resource sector, in growing Australia’s resource sector and realising greater value here at home, offers a much better and more sustainable path back to budget surplus and stronger long-term revenue generation for our country.” “And ensuring that Australia’s economic and regulatory framework becomes more, not less attractive is essential to our future prosperity.”

Calls to back the sector that powers the surplus

Industry Queensland

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