NSW to be taxed twice under Baird plan, Keneally says

A NSW State opposition plan to implement a mining tax would drive jobs overseas and interstate, Premier Kristina Keneally has said.

This follows shadow treasurer Mike Baird’s call for an overhaul of the state-federal taxation system, after saying that while states raise only 16% of taxes, they are responsible for 40% of service delivery, according to AAP.

This is part of a move to institute a profits based tax on the industry to replace the existing royalty system.

Under the Mineral Resources Rent Tax, miners would still pay state royalties, but would later be reimbursed by the Federal Government.

However, after talks late last year, the Government announced that while it would cover initial royalty rates, it would not cover any future increases of the royalties.

This move drew massive criticisms from the mining industry, which accused Canberra of undermining the industry.

Currently campaigning in the Hunter Valley, Keneally said that Baird’s proposed overhaul of the system for NSW would potentially push jobs away from the State.

"Mike Baird wants to impose a NSW mining tax, that would be on top of the Federal Government’s (proposed) mining tax, and what that basically means for NSW is a loss of jobs," she said in Newcastle.

“This is a tax that only companies in NSW would pay,” she told AAP.

"That means these jobs, well, you may as well pack them up and send them to WA and Queensland or send them overseas."

Keneally announcement comes as she begins a three day tour of the Hunter to promote her $913 million Fairness for Families package as well as various funding arrangements for increased police in the region.
 

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