Resource Tax another “rip off”, Crook
Author: Tony Crook
Published on: 06-May-2010
The Nationals WA Candidate for O’Connor Tony Crook says the proposed Resource Super Profits Tax is yet another Federal Government “rip off” that will cost jobs, pose threats to the mining industry and put projects at risk.
As a result of the Henry Tax Review, the Federal Government has proposed a 40 per cent tax on mining company profits, which will be used to pay for a cut in company tax and a range of superannuation measures.
“This tax has prompted howls of protest from the mining industry and fair enough too,” Mr Crook said.”
Mr Crook said the Prime Minister and Treasurer have again taken a path that will end in tears and disadvantage Western Australia.
“One of the most disappointing aspects of the Government’s response to the review was the failure to deliver on a flow-through-share scheme,” Mr Crook said.
Instead, the Government will introduce a Resource Exploration Rebate which, although positive, does not work in the same way to help start-up exploration companies.
“Mr Rudd and Mr Swan clearly have no concept of the risks involved in getting a mine operational,” he said.
“They are only interested in the big pay out from mining companies, so they can recoup the massive debt they have racked up with the bungled Insulation program and the shoddy Education Revolution.
“The Government has taken the electorally popular decision to tax WA as they know there are more votes in the Sydney metro area than in all of Western Australia.
Mr Crook said the Federal Government could learn a thing or two from The Nationals, after securing 25 per cent of mining and petroleum royalties for regional areas The Nationals WA boosted resource exploration by implementing the Exploration Incentive Scheme.
“The Exploration Incentive Scheme was embraced by the Mining Industry, particularly junior miners and it’s disappointing the Federal Government didn’t deliver on a flow-through-share scheme that would further assist juniors and start-up companies,” Mr Crook said.
“WA is sick of getting ripped off by Canberra – our economy keeps propping up the eastern states and little is delivered back to the West.
The Nationals WA outlined their plan to ‘reverse the rip-off’ and get WA’s fair share through a new State / Federal partnership in a discussion paper released last weekend.
“The Nationals in State Parliament are delivering for regional WA, now it’s time to send a Nat to Canberra to give WA a voice.”
