The Association of Mining and Exploration Companies (AMEC) has welcomed the 2020-21 Federal Budget as a bold national commitment to Australia’s economic recovery and economic future.
Chief Executive Officer of the AMEC, Warren Pearce, said the Budget provides vitally needed financial support programs, individual and business tax relief, matched with investment in long term economic infrastructure that will support Australia’s growth now and into the future.
“The Budget rightly focuses on supporting those Australians most impacted by the COVID pandemic,” he said.
“The mining industry has helped carry Australia’s economy through this challenging period and will be supported to continue growing. Industry can expect to benefit from a wide range of commitments in this budget.”
“The $74 billion JobMaker plan is vast in its scope with significant investments across a wide range of job creation measures,” Mr Pearce commented.
“The $4 billion Job Maker Hiring Credit will help lift Australians off JobSeeker into employment, by partially subsidising employers engaging young Australians and helping transition away from JobSeeker over time.”
“The $1.5 billion Modern Manufacturing Strategy will support Australian manufacturers to scale up in six priority areas, including resources technology and critical minerals processing, recycling and clean energy.”
Mr Pearce said $2 billion of new incentives will spur greater investment in research and development and reverse last year’s shock decision to cut back on R&D – assisting mining companies looking for opportunities to value add, and helping Australia realise greater value from its minerals.
“Most Australian businesses will now be able to completely depreciate assets that they purchase across the next 21 months, supporting investment in new technology, and productivity and efficiency improvements. This will be especially important for mining industry service providers now looking to re-invest in their businesses and grow.”
He noted that the funding of 100,000 new apprenticeships, through a 50 per cent wage subsidy, would support the development of new highly skilled workers needed to grow the mining industry.
The Government also announced that a further $7.5 billion will be invested in new road and rail infrastructure across the country.
Mr Pearce said to support these significant expenditure measures, the Government must continue to prioritise streamlining of legislation and regulation, to help bring forward investment and take the shackles of business growth.
“Efficient approvals, cutting red tape, and incentivising growth are essential for our long-term future. The Government must focus on reducing the cost of doing business, and maximising Australia’s investment attractiveness.”
Prior to yesterday’s Budget, the Federal Government announced $125 million to expand the Exploring for the Future Program. Mr Pearce noted that it is a critical investment in the future of the Australian mineral exploration industry.
“The Government must now commit to extending the Junior Mineral Exploration Incentive beyond 2020, and support the industry’s effort to find the minerals that will ultimately become new mining projects, injecting new investment into our economy and creating thousands of new jobs,” he said.
“The mining and mineral exploration industry will continue to play a critical role in Australia’s economic recovery, and [the 2020-21] Federal Budget will help industry assist Australia to recover faster.”
