Not only does Queensland Treasurer Andrew Fraser oppose any move away from having state governments receive mining royalties, he told MINING DAILY that the existing system should be amended to address an imbalance in payments.
“The Federal Government collects 80% of the nation’s tax revenue, while the states do the heavy lifting on service and infrastructure delivery,” he said.
“This fundamental imbalance should be fixed.”
Fraser’s comments are in relation to a new potential tax system that will reportedly replace mining royalties with a new federal tax.
The soon to be released Henry review, from Federal Secretary to the Treasurer Dr Ken Henry, is expected to recommend a new federal ‘rent tax’, designed to deliver revenue directly to the Federal Government.
As MINING DAILY reported yesterday, suggestions of denying states their mining royalties have been met with vocal opposition from the Premiers of both Queensland and Western Australia.
According to Fraser, resource rich states already see enough of their revenue go to Canberra.
“The mining states already have their royalty income distributed through the Commonwealth Grants Commission,” he said.
“These royalty payments should stay within their state of origin.”