Mining to suffer under Federal and State budget fights

 The NSW Minerals Council have called for the Federal and State Government to urgently put their differences aside and discuss the impacts of the carbon tax and state royalty changes.

The Council warned if the two were unable to put their differences aside, NSW may become the ‘biggest loser’ in the budget battle.

The increase in royalty rates announced earlier this week, is the second since 2008 and comes on the back of a 154% increase in royalty returns over the past four years.

Nikki Williams, NSW Minerals Council CEO, warned that the state could miss out on $2 billion in unallocated MRRT infrastructure funding, GST revenues, and economic growth.

“This State is crying out for infrastructure spending, but the people of NSW and the State’s mining industry could end up as collateral damage if this tussle between Canberra and Macquarie Street isn’t resolved,” Williams said.

“Both governments need the NSW economy to grow and they both need a strong mining industry to deliver the revenues that they are banking on to fund infrastructure projects in Sydney and in regional NSW and company tax cuts and investment in superannuation across Australia.”

 

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