Opposition mounts challenge on ‘flawed’ gold tax

The opposition is mounting a last-ditch challenge on a new gold mine tax introduced by Andrews Government, saying the “flawed” tax is “putting jobs and regional small businesses at risk”.

Geologist Jason Fothergill checks out some quartz on the mines at the Ballarat Gold Fields in Victoria 10/05/1999.

A new tax on Victorian gold mines will be overturned if the state Opposition succeeds in a last-ditch parliamentary manoeuvre on Wednesday.

Treasurer Tim Pallas last year introduced royalty payments on gold, with the 2.75 per cent charge kicking in on January 1 despite warnings about the impact on regional jobs.

The Herald Sun can reveal the state Opposition will move a disallowance motion in parliament on Wednesday in an effort to strike out the tax.

It will need the support of nine out of 11 crossbench MPs in the Legislative Council to force the government to overhaul the royalty.

“Labor needs to go back to the drawing board with its flawed gold tax and start working with industry to save regional jobs,” Shadow Treasurer Louise Staley said.

Victorian Treasurer Tim Pallas introduced the royalty payments on gold last. Picture: David Crosling

“Hundreds of well-paid regional jobs rely on a viable gold industry but Labor’s gold tax design is putting jobs and regional small businesses at risk and needs to be completely reworked.”

Victoria is the last state to introduce a gold royalty and the government expects to raise $56 million over four years. Mr Pallas has argued miners should not be able to run their business “on the principle of getting free stuff”.

But Minerals Council of Australia state executive director James Sorahan said the royalty would amount to “a tax of $12,800 on every single job in the gold industry in Stawell, Ballarat, Bendigo and Heathcote”.

The Minerals Council tried unsuccessfully to delay the introduction of the royalty by 12 months to fix the “rushed and poorly designed” measure before it was introduced this year.

Mr Pallas recently spruiked $154 million in savings shared by 4400 businesses in regional Victoria after the government cut payroll taxes.

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Mr Sorahan said payroll tax reductions were “small compared to the huge tax bill mines will face in regional areas from the gold royalty”.

“By the Treasurer’s own admission, taxes hit the ability of businesses to support local jobs. The gold royalty is a tax on regional jobs,” he said.

Ms Staley said the Opposition would call on crossbench MPs “to join us in saving regional jobs”.

“Only by passing this motion can we force this arrogant Labor government to start listening to all Victorians to ensure a sustainable gold industry,” she said.

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