The Chamber of Minerals and Energy notes comments in the media attributed to the Member for Pilbara, Brendon Grylls MLA, in proposing a $5 per tonne mining tax on BHP Billiton and Rio Tinto.
While Mr Grylls’ short-sighted plan to tax BHP Billiton and Rio Tinto is only in its infancy, any suggestion it would become a future policy of the National Party is strongly opposed by CME and the resources sector.
Not only would the plan be detrimental to Western Australia’s international economic standing but competitors would revel in the news.
When royalties increase, so too does the contribution to the Federal Government, which means a loss of revenue for Western Australia.
Mining royalties paid to the Western Australian Government are estimated to account for 15 per cent of total revenue in 2016/17, with iron ore miners paying 90 per cent of those royalties. This is a substantial increase from 10 years ago when royalties accounted for just five per cent of revenue.
A comprehensive review of the State’s royalty system was conducted recently with the final report released in March 2015. The report recommended no changes be made to the current royalty system. CME is supportive of those findings.
