Mining underpins NSW Budget
19 June 2018
Over the four years to 2021-22, the mining sector will deliver a total of $7.4 billion royalties revenue to the New South Wales State Budget. This will contribute to an average budget surplus of $1.6 billion over the next four years.
The strong return mining gives to the community of jobs, revenues and royalties underlines New South Wales reliance on a strong mining sector.
The Budget has positives for the mining and mineral exploration industry. The ‘resources for regions’ programme, a part of the $1 billion Regional Growth Fund, will return further benefits to the regional areas that are home to many mines.
The mineral exploration industry and emerging mining companies will benefit from the proposed increase in payroll tax thresholds. The threshold that a business pays payroll tax will rise from $750,000 to $1 million over the coming four years.
“Today’s Budget reinforces that mining is a pillar of the New South Wales’ economy,” said Warren Pearce, Chief Executive Officer, Association of Mining and Exploration Companies (AMEC).
“It is positive that the Government has not changed the royalty regime, as investors need transparency and certainty to invest.”
“The cuts to the payroll tax rate is a needed reduction to the cost of doing business that will also benefit our sector.”
“Each new mine creates jobs, revenues for local businesses and Government.”
“Mining underpins the technologies that we count on every single day. For example, there are over 62 different metals and minerals in the average mobile phone. Locally mining those metals and minerals will ensure they are ethically and responsibly mined.”
“There remains great potential for future mining and mineral exploration in New South Wales, this Budget has again shown that mining is supporting New South Wales,” said Mr Pearce.