Page 146 - Minesite 2011

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TAXING TIMES
LES WALKLING, BURRUP PENINSULA, 2010
DAMIAN CALLACHOR
DIRECTOR
CHAMBER OF MINERALS AND ENERGY OF WA
he Western Australian resources sector
continues in a period of sustained growth and is
the main driver of the Australian economy but
with the number of new taxes and impositions
being placed upon it, you would be excused for
thinking it was doing something wrong.
In June this year, the Federal Government released its
preliminary Exposure Draft legislation for the proposed
Minerals Resource Rent Tax (MRRT).
CME has always maintained a strong preference for
retention of the current state royalty regime, administered by
the state government, with revenues flowing to the state. The
state has primary responsibility for resource project approvals
and the provision of common user infrastructure, and therefore
it is imperative the state government maintains and receives a
dividend from WA resources.
CME would not stand in the way of genuine reform of the
Australian taxation system if it provides for an efficient and
effective tax regime.
In relation to any consideration of a federal tax on resources
CME believes it should:
be prospective, that is apply only to new investment
protect Australia’s international competitiveness
be differentiated by resource commodities
be levied on primary resource value; and
be equitable and efficient.
biting the hand that feeds it
T
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