Allan government’s latest stealthy money grab

The latest in a string of 60 taxes or hikes will see this one fee jacked up by more than 230 per cent, and business owners say it’ll only fuel illegal activity.

Gold hunters are warning illegal prospecting and mining will skyrocket in Victoria after the Allan government moved to hike mining fees.

Prospectors and Mining Association of Victoria president Jason Cornish has hit out at the government saying gold prospectors are “fired up” along with small mining businesses after the state have proposed to jack up mining fees.

A 10-year licence for small time gold hunters is proposed to jump more than two-fold from $27.80 to $93.10.

Tourist licences could rise from $104.50 to $349.50.

The government’s preferred option would be to hit all categories with a flat 234 per cent increase.

“They are rising (on average) 234 per cent and that includes miner’s rights, which is just a massive increase,” Mr Cornish said.

“For prospectors it works out to be $9 a year and it doesn’t seem like much, but it’s the principle of the matter. How many times do we have to be taxed until someone says enough is enough? That’s how you boil a frog you put him warm water and you slowly heat it up and before you know it he’s cooked.

“We know this government is broke, so obviously the only way they can figure things out is by is by taxing industries.”

A 10-year licence for small time gold hunters has jumped more than two-fold. Picture: Supplied

Mr Cornish also warned that the fee hike on small scale mining operations would have big impacts and “would send many of them to the wall” and he warned the state would see more people “not following the rules”.

“It’s a massive cost incursion. There’s going to be more illegal mining. There’s going to be more illegal prospecting because people are not going to bother to go and get a miners rights. They will just go out and run the risk they don’t get caught, because there’s no field staff. They have been whittled away now.”

The government currently rakes in more than $130 million a year in mining royalties, which Mr Cornish argued should cover the cost of regulation.

It is understood current mining fees only cover 36 per cent of regulatory costs of the whole industry and the new funds will be used to cut down time frames for processing new mining projects as well as improving overall regulation.

Labor has increased or introduced 60 new taxes since coming into power. Picture: Diego Fedele

A Victorian government spokesperson said the state was committed to improving productivity in the industry.

“We’re consulting on proposed changes to mining and quarry fees to make sure the Earth Resources Regulator has the resources it needs help to keep the community and miners safe,” they said.

“The number of mineral license applications has increased 2.5 times since 2018 and we want to see faster approvals and better service for industry, helping them reduce costs and get their resources to market quicker.

Opposition spokesman for energy and mining David Davis said the hike was another hit to “everyday Victorians”.

“Victoria was founded on mining and the issuing of a miners right,’ he said.

“Jacinta Allan plans to increase the cost of the miner’s rights. A king hit for the weekend pass times of so many Victorians. Surely the impact of these new charges on hard up families in a cost of living crisis should be considered.”

He added it was among more than 60 new or increased taxes that Labor had introduced since coming into power.

The proposed changes are out for public consultation until late June with amendments to be made by October.

Originally published as Allan government’s latest stealthy money grab