AusIMM stated the mining industry generated more than $A50 billion in government revenues during the last four years, enough to pay off the federal government’s recently announced $42-billion stimulus package.
“Already there’s concern about the future economic burden that the stimulus package will place on Australians, whether or not it stabilises our economy and assists its recovery,” AusIMM chief executive Michael Catchpole said.
“And yet the stimulus measures announced to date have completely neglected the one sector – mining – that has the greatest potential to generate huge revenues over a longer economic cycle and put the federal budget back in the black.”
On the flow-through share scheme, which can boost investment by allowing mining companies to pass on tax deductions on to investors, Catchpole said AusIMM and other industry groups have made a joint submission asking the federal government to introduce it as a priority.
“But there is a resounding silence from the government – even embarrassment on their part that a measure that even they agree is both justified and effective has not been introduced.”
He added that effective measures to support exploration are even more important than ever before, given the fear gripping financial markets.
“Far more than any ‘economic stimulus’ package aimed at family shoppers, the very real stimulus of a flow-through share scheme will ensure that exploration capital – the lifeblood of the minerals industry – keeps flowing.”
Catchpole said the mining industry accounted for almost 11% of GDP last year, or $119 billion.
