Mining industry associations respond to Federal Budget

Both the MCA and QRC said the resources sector’s record tax revenue of $41 billion contributed towards the Federal Government delivering its first budget surplus in 15 years.

MCA chief executive officer Tania Constable said this budget surplus does not have to be a one-off and the predicted decrease in mining investments can be reversed.

“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,” Constable said.

Constable said the $41 billion in taxes paid by Australian mineral companies in 2021-22 is the result of the massive investment by the minerals industry which occurred a decade ago.

“It underpins the Federal Government’s rapidly improved budget position this year,” Constable 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.”

QRC chief executive Ian Macfarlane when the resources are strong, the economy is strong.

“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,” Macfarlane said.

The QRC said Queensland coal, gas and minerals producers contributed a record $94.6 billion to the state’s economy in the 2021-22 financial year.

The QRC welcomed many of the budget initiatives related to the resources sector, such as the Federal Government’s investment of $57.1 million to develop critical minerals international partnerships and $23.4 million for critical minerals policy development and project facilitation.

The QRC said it builds upon the $2 billion Critical Minerals Facility and $1 billion targeted to value adding in resources under the recently passed National Reconstruction Fund.

“This budget underlines the importance of keeping the resources sector strong,” Macfarlane said.