Labor to delay royalties for new mine: A story with a link
Faced with an angry public and rising criticism of mining taxes, Western Australia’s new Liberal government proposed Friday a tax credit offer worth up to $40 million for mining companies.
The move was one of many in the West Australian state’s current budget, which have highlighted the impact of lower commodity prices on businesses in a struggling state.
“As a result of the new budget… we are in the process of reviewing the state mining royalty structure, and our options for reducing government revenues remain extremely limited for the foreseeable future,” Western Australia Finance Minister Michael Meacher said in a statement Friday.
While the prospect of a $40 million reward is good for some business owners, it would seem that there is a big gap between the proposed value of the incentives and the revenues that Western Australia gets from them.
A study by the independent Senate Economics and Fiscal Review panel concluded that the revenue for royalties paid out so far over the past several years was the lowest in Australia. The study determined that the average revenue for royalties for the most productive resources comes in at $2.65 per megawatt-hour, while an additional 0.6 cents of this comes ou더킹카지노t of royalties, or about $11.80 per megawatt-hour.
But the mining royalty is a significant portion of Western Australia’s economy and most of its businesses depend heavily on mining in this part of the world.
A recent study by the Australian Council of Trade Unions estimated that mining taxes generated a net benefit for WA of around $18 million a year. That’s a sum far smaller than the $120 million the state’s mining and gas industries currently draw in annually — enough for the region and the world to survive, even in an oil-dependent economy like Western Australia.
“When you reduce some of these revenue streams and you see a loss of business growth in a state or province like Western Australia, then it’s very difficult to justify continuing to do that,” said Steven Wainwright, an analyst for the Australian Economic Review.
Wainwright said he doesn’t understand why Western Australia is not taking this opportunity to reduce government revenue to the level it needs to make changes in Western Australia’s budget.
“If you have no real concern about what you’re doing, and you’re only concerned about one par