The Minerals Council of Australia (MCA) Victorian branch has again slammed the state government’s proposed 2.75 per cent gold royalty, labelling it as “unfair”.
MCA executive director James Sorahan highlighted his concerns about how the tax will affect regional mining towns and workers.
Following a public consultation phase in September and October, the government has released a Regulatory Impact Statement, outlining reasons for the decision.
The regulation deemed the royalty will ensure the wider community will receive profit on the resources it owns, stating “production is unlikely to be affected by the presence of the royalty because producers are expected to remain profitable.”
Sorahan however, does not believe this to be the case.
“Every gold mine in Victoria will be hit with this tax; mines pay it if they are making profit or not, whether big or small, and at a rate higher than Western Australia’s royalty,” Sorahan said.
“Any gold royalty imposed in Victoria must be fit for purpose and deal with unintended impacts on operating mines.
“The regulation is just the latest example of the disdain shown by the government towards hard-working regional Victorians during the long-running gold royalty fiasco.”
With any chance of delaying the regulation now in the hands of the opposition government and Legislative Council cross-bench, Sorahan is urging council members to support a disallowance motion against it.
The Victorian Government has proposes that the royalty will be released in the 2019/20 Victorian budget, shocking local mining companies.
Gold is currently the only mineral exempt from royalties in Victoria.
Almost 12,000 Victorians are mining employees and the industry supports a further 88,000 jobs through its supply chain of mining equipment, technology and services (METS) sector.