The McGowan Government has relaunched their Gold Tax plan but the Opposition made it clear that they will not support it.
During a joint press conference this morning, WA Treasurer Ben Wyatt and Minister for Mining & Petroleum Bill Johnston put forward their new Gold Tax plan.
Under new rules, gold royalty rate will still increase from 2.5% to 3.75%, however, it will only apply if the international gold price increase to over $1,400 per ounce, compared to $1,200 in the previous bill.
Marginal miners will receive a tax rebate under the new scheme, if their overall expenses goes above 85% of the gold price.
Small producers who produce less than 2,500 ounce of gold per year will continue to be exempt from paying the tax.
Medium gold producers will also get to retain the 2,500 ounce per year royalty free rate.
The assistance package will be in place for at least two years, with the government stating that small mine operations will remain unchanged.
WA Treasurer Ben Wyatt believes the new gold tax package address the gold industry’s concerns, he expects the increase will generate a net revenue of $332 million to help the budget repair.
“The Government has looked at the alternative revenue measures, and has formed the view that this new gold measure is the fairest way to help fix the budget,” He said.
“I understand that the gold industry is opposed to any increase in their royalty rate. However, we have listened to their concerns, and have addressed them in a reasonable way, while also ensuring that the industry is contributing towards budget repair.”
However, the Liberal Opposition expressed that they will not support the bill, accusing the McGowan Government of breaking its promise of no tax increase.
“This decision by the McGowan Government is not about budget repair but is to pay for Labor’s un-costed, unfunded and unaffordable election commitments,” Dr Nahan said.
“Premier McGowan is asking the parliament to allow him to break one promise in order to fund other promises.”
It’s also understood that some cross benchers won’t support the new bill despite small and medium miners are given assistance packages.