There are legitimate ways for the federal government to receive more money from the mining industry, he said.
“Bring projects forward by shortening the damaging delays required for permissions and, of course, reduce the rate of company tax to increase revenue from company tax,” he said.
“The evidence is that reducing the rate of company tax does not reduce the quantum of revenue received, but in fact boosts revenue.”
The government should also exempt mining and agriculture from all diesel excise, he said.
“The extra saving of six cents a litre could make a big positive difference.”
Darby said it was a myth that the mining industry was heavily subsidised by the federal government.
“There exists a sub-culture of anti-mining elements, including the Greens, and significant sections of the media who wrongly assert that the mining industry is heavily subsidised,” he said.
He rejects claims by the former leader of the Australian Greens that the government could save $14 billion over four years by removing subsidies and rebates such as the diesel fuel rebate to the mining industry.
“The mere threat of ripping $14 billion out of the mining industry would cripple mining investment and cause a mass exodus of hard-working Australians to Canada, Africa and South America,” he said.
“The proponents of excise on diesel for truckers and motorists justify the impost by reference to the need to pay for road construction and maintenance. There is no justification whatever for an excise on diesel fuel used for mining or agriculture.”
Recently there had been a revival of concern that foreign-based companies may be declaring too little of their profits in Australia, Darby said.
“The Australian government should aim at a rate of taxation sufficiently low to minimise the disincentives imposed on Australian companies and individuals, while also encouraging foreign companies to arrange their affairs so that their declared profits in Australia are maximised,” he said.
“As Gina Rinehart wrote in the December 2014 issue of Australian Resources and Investment: ‘The real issue isn’t who gets richer – it’s actually that Australia needs to be more commercially competitive, and that way, many get opportunities and jobs, and many get richer.’”
