Article by Simone Grogan, courtesy of The West Australian.
The lobby group representing WA’s biggest players in mining has lambasted “harmful” Federal Government policies as waning commodity prices and a slowing Chinese economy cruel the Federal Budget.
Reacting to the Federal Government’s Mid-Year Economic and Fiscal Outlook (MYEFO), Chamber of Minerals and Energy WA chief Rebecca Tomkinson said the likes of industrial relations reforms and Nature Positive legislation were stifling business confidence.
It comes as new budget forecasts reveal expected revenue from mining exports could fall by a whopping $100 billion over the next four years. The hit to exports is expected to weigh on the Federal Budget, which is on track for a $26.9b deficit for the 2024 to 2025 financial year.
Federal Treasurer Jim Chalmers has pointed the finger at a weaker global economy, but the mining industry argued Labor policy was the problem.
“These downgrades must act as a wake-up call for the Commonwealth Government to the substantial challenges confronting WA’s resources sector,” Ms Tomkinson said.
“Harmful policy is no longer just a handbrake on the growth of industry – for some commodities it is now an existential threat.”
The chief executive said industrial relations changes were to blame.
“Disconnecting wage rises from productivity gains and opening the door to widespread industrial action has substantially increased investment risk,” Ms Tomkinson said.
“Uncertainty over the future of Nature Positive legislation is also hurting business confidence.”
Tax paid by companies was expected to fall by $6.6b in 2024–25 and $8.5b over the forward estimates.
