
The 2024-25 Federal Budget has once again underscored the crucial role of the mining industry in sustaining the Australian economy, according to Tania Constable, CEO of the Minerals Council of Australia (MCA).
Constable emphasised that the budget surplus is largely due to robust contributions from the mining sector, which accounted for over half of all company tax collected from large companies.
She asserted that with the right policy settings, the industry could continue to propel the economy forward and repeat this fiscal achievement.
Federal Resources Minister Madeleine King introduced significant measures in the budget to bolster the industry’s exploration, foreign investment, subsidies, and common user infrastructure.
These measures are designed to enhance the minerals industry’s investment and competitiveness, ultimately benefiting Australian communities.
One notable initiative is the streamlining of rules and processes under the Foreign Investment Review Board (FIRB) and Foreign Acquisitions and Takeovers Act (FATA).
This change aims to facilitate investment proposals in minerals projects from strategic partner countries, boosting the industry’s global competitiveness.
Additionally, the government announced $566 million in funding for Geoscience Australia.
This funding will enable public access to a richer set of nationally consistent pre-competitive data, offering a detailed investment prospectus for mining companies and paving the way for more precise and productive exploration efforts.
These measures, long advocated by the MCA, are expected to increase opportunities for Australian critical minerals development.
However, Constable noted that the government must do more to improve Australia’s global competitiveness and attract much-needed investment.
She suggested that production tax credits to attract investments in mining and minerals processing could position Australia advantageously in the global clean energy transition.
Despite the Treasurer’s warning about global uncertainty and the fact that these credits will have no immediate impact on the budget, the MCA plans to work with the government and Treasury to understand the long-term benefits of this policy.
Constable also highlighted challenges facing the industry, including a 30 per cent company tax rate, environmental approval uncertainties, escalating energy costs, and changes to industrial relations policies, all of which contribute to a less favourable investment environment.
As global competition intensifies, particularly from other resource-rich economies eager to capitalise on the demand for minerals essential for a net-zero future, Constable stressed the need for Australia to be at the forefront.
She reminded the federal government that businesses and industries are the real wealth creators in Australia, and every Australian has a stake in the success of the mining industry.
“At a time when Australia grapples with decaying productivity and looming long-term structural fiscal deficits, the government is imposing regressive policies on the sector that dampen the investment growth critical to achieving our economic potential,” said Constable.