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Little impact on local miners: Williams

Tuesday, 4th May, 2010

Local mining companies, such as mineral sands miner Bemax, will not be hit by the new tax, according to local MP John Williams. Local mining companies, such as mineral sands miner Bemax, will not be hit by the new tax, according to local MP John Williams.

A big tax on miners and a huge infrastructure fund would have little impact locally, according to the Member for Murray-Darling.
John Williams said he expected a 40 per cent super tax on mining companies
to have little impact
on the city and that a State
infrastructure fund built
from that tax would have
an equally limited impact.
“The way I see it I
don’t think this tax will
impact on our local miners
because they’re not in that
category to get the super
taxes,” Mr Williams said.
“It’s aimed fairly and
squarely at those companies
who are (engaged) in
huge profit taking and I
don’t think we fall into
that category.”
Mr Williams’ comments
come following an
announcement by Prime
Minister Kevin Rudd on
Sunday that he would take
one of the recommendations
from the Henry tax
review and create a super
tax on miners.
The Resources Super
Profit Tax would see big
mining companies pay the
Federal Government 40
per cent of their profits,
after exploration and capital
expenditure costs.
The tax will reap $3 billion
in 2012-13 and will
pump $9 billion per year
into the government’s coffers
by 2013-14.
The money would be
used to reduce tax on businesses,
to increase compulsory
superannuation
payments and to pay for
an infrastructure fund to
be used by the states.
But Mr Williams said
it was unlikely the city
would see much of that
fund, expected to be $700
million by 2012, unless
it adopted a scheme like
the one used in Western
Australia where 25 per
cent of its mining and offshore
petroleum royalties
are directed back to country
areas.
“The only way we could
guarantee a fair share is
to adopt a Royalties for
Regions program like they
did in WA.”
Mr Williams said state
governments were historically
underfunded and that
the new infrastructure fund
would only be as good as
those who managed the
millions they got.
But he said any new
money would be welcome
and he has local road
projects in his sights.
“Obviously there’s
demand for more infrastructure
and not enough
money,” he said.
“The fact is it’s down to
NSW to manage the revenue
because as we know
people who can’t manage
money no matter how
much they’ve got there’s
never enough.
“There’s no doubt (an
infrastructure fund would
help and) ... the completion
of the Silver City
Highway is an absolutely
priority.”
While Mr Williams did
not say he supported the
tax, he did say there was
only one chance to reap
what the mining boom was
sowing.
“I guess when you start
thinking of the amount of
income out of Australia
that goes to overseas companies
you’ve only got one
opportunity to get some
benefit,” he said
“Some of those profits
should come back.”
Mr Williams said a cut
in business tax from 30 to
28 per cent was welcomed
but would be all but taken
up by extra superannuation
contributions - rising
in increments from nine
per cent to 12 per cent by
2020.
“While it’s great for the
workers, small businesses
especially (will feel the
pinch),” he said.
“Small business will get
a tax rebate but ... it’s give
in one hand, take with the
other.
“That in my mind
doesn’t produce the true
tax relief.”

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