Barnett to increase royalty rates

WA premier Colin Barnett will still increase mining royalty rates despite the announcement of the Federal Resources Super Tax.

West Australian premier Colin Barnett has announced plans to raise mining royalty rates despite the proposed new Federal super tax on resources companies.

However, the plans to scrap the concessional rate for BHP and Rio were made well before the newly proposed tax, with Barnett saying the Federal Tax and the royalty rates rise are two different things.

Barnett went on to condemn the Henry Tax Review’s 40% tax on mining profits, stating that it could potentially jeopardise future mining projects and jobs, and poses a real threat to the mining industry.

On the back of royalty raising in WA, South Australian treasurer Kevin Foley has announced his State will also consider increasing mining royalties as well from the current rate of 3.5% as increased royalty rates had not decreased investment in WA, he said.

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