CLP to scrap controversial mining tax model if elected in August

THE Country Liberal Party has stolen the march on the Gunner Government with the Territory’s mining sector by promising to scrap the controversial hybrid mining tax model – a move it says will create new investment and hundreds of new jobs.

The Country Liberal Party has stolen the march on the Gunner Government with the Territory’s mining sector by promising to scrap the controversial hybrid mining tax model – a move it says will create new investment and hundreds of new jobs. Picture: IStock

THE Country Liberal Party has stolen the march on the Gunner Government with the Territory’s mining sector by promising to scrap the controversial hybrid mining tax model – a move it says will create new investment and hundreds of new jobs.

The tax model was introduced by the Gunner Government two years ago and is loathed by the mining industry because it is seen as a disincentive for investment.

CLP Leader Lia Finocchiaro told the NT News a CLP government would have an ad valorem-only royalty system for all new mining operations, based on the WA regime.

She said she would phase in the system for existing mines, in consultation with industry.

“The Gunner Government’s model is a huge deterrent to businesses investing here,” she said.

“The Territory needs to be an attractive destination for mining investment to create jobs for Territorians.

“The new system will make it easier for existing operations and prospective businesses to forecast royalty expenses.”

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Association of Mining and Exploration Companies chief executive Warren Pearce said the proposal showed gutsy leadership and, if implemented, would attract new mines, jobs and wealth to the NT.

Mr Pearce said the current NT Government model did more to drive investment away from the Territory than help it.

“We’ve been advocating for two years to get away from the NT Government’s complicated hybrid policy and actually get something that will help attract investment,” he said. “We have 20-odd members exploring the Territory who want to be able to develop new mines and you need an investment environment that is as encouraging as possible.

“The resource sector can deliver thousands of jobs and is the sector that can lead a Northern Territory economic recovery.”

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Minerals Council Australia NT executive director Drew Wagner said he was largely supportive and was keen to see more detail of the CLP policy.

“We have long called for the removal of the hybrid, and a move to a simplified system – ad valorem can be that, but it all depends on the percentage number charged, at what point this gets charged and the fact that one size does not fit all,” he said.

“The uncertainty of the current government hybrid system is unlikely to attract new investment.”

Originally published as CLP to scrap controversial mining tax model if elected in August