14 May 2014
Queensland Resources Council head Michael Roche says the federal budget has delivered on key promises that will help the mining industry.
Federal Treasurer Joe Hockey unveiled the Coalition Government’s first budget last night.
The budget provides $100 million over four years for minerals exploration, by giving small explorers not making any taxable income access to a refundable tax offset for their Australian shareholders.
The Federal Government has also spared mining an increase in the diesel fuel excise.
Currently commercial vehicles used in mining and agriculture get a rebate on the diesel fuel excise that drops it to six cents per litre.
Before the budget, there had been calls to raise this in line with the petrol fuel excise.
The budget also outlines $3.4 billion over the next three years from the abolition of the Minerals Resource Rent Tax.
Mr Roche says the budget delivers on key election commitments, such as ending the carbon tax and the mining tax.
“It also injects much needed support to fund the next generation of mines in the form of the promised exploration development incentive and that’s targeted at small companies,” he said.
Regional employment concerns
However, Mr Roche is concerned about cuts to regional employment programs.
“We were also surprised and need more information about very large cuts to Indigenous affairs programs,” he said.
“We want to know what that means for job opportunities for Indigenous people in remote and regional Queensland.”
Construction, Forestry, Mining and Energy Union (CFMEU) spokesman Steve Smyth says the budget has been kind to the mining industry.
Mr Smyth says he hopes the benefits will trickle down to workers.
“I hope the flow-on from it flows down to obviously people within the industry I represent and Australians generally,” he said.
“Obviously as long as the industry keep prospering and workers keep continuing to be employed, then that can be a positive step in that industry.”
Courtesy of ABC News
14 May 2014