The minerals industry has welcomed the New South Wales Government’s commitment to not increasing mining royalties in the upcoming state budget.
According to a media report, NSW Treasurer Dominic Perrotet made the promise, which is consistent with written commitments received from the state’s Coalition government and Labor opposition prior to the recent NSW election.
The commitment received from the Coalition prior to the NSW election stated that, “there are no plans to increase mining royalties in the next term of parliament.”
“There are also no plans to increase industry fees and levies by more than consumer price index (CPI) in the next term of parliament.”
Correspondence between the NSW Minerals Council and the Coalition outlined the party’s stance on the vast benefits mining brings to the people of NSW.
“The revenue from royalties paid to the state by mining supports the provision of essential services like schools, hospitals and transport,” it read.
“Effective regulation supports productivity growth, investment and innovation, but poor regulation slows economic growth and increases the cost of doing business.”
The NSW Labor opposition also provided a similar commitment prior to the election, promising that “A Daley Government will not increase the rates at which mining royalties are levied.”
The NSW Minerals Councils has welcomed the confirmation, with chief executive officer Stephen Galilee saying the commitment created stability in the sector.
“While uncertainty has been created by changes related to mining royalties in some other states, we welcome the certainty created by this commitment from the NSW Treasurer in relation to NSW mining royalties,” he said.