The MCA calls on the federal government to pursue policies that will incentivise Australian businesses to improve productivity and guard their competitiveness so they can help turbo-charge the economy.
In its 2022-23 pre-budget submission, the MCA also encourages the government not to burden businesses with new or increased costs, such as taxes and unnecessary regulation.
Mining is Australia’s largest exporter and industry, the biggest company taxpayer and a major investor in infrastructure and equipment.
A strong mining sector will help the government successfully embark on Budget repair and reduce the debt burden on future generations.
Over the past two decades, the minerals industry has underpinned the nation’s prosperity through its contribution to exports, jobs, incomes and government revenue. It has also been central to supporting regions and communities.
Australian mining’s contribution to the economy over the last decade has been tremendous – $2.1 trillion in resources export revenue, $246 billion in mining wages and 21 per cent of Australia’s GDP growth.
Over the same period, the industry has also generated large fiscal returns to the economy contributing $132 billion in company taxes and $106 billion in royalties.
The mining industry is now focussed on the next decade and beyond but success will be depend on comprehensive policies that support all businesses.
The mining industry needs policies that deliver:
- internationally competitive tax settings (and no additional tax imposts or changes to long-standing tax policy, such as the fuel tax credit scheme)
- productive workplace relations
- a highly skilled workforce
- timely project approvals and related environmental and heritage protection
- strong industry and First Nations partnerships
- expanded trade and foreign investment
- support for investment in exploration, innovation and decarbonisation, and
- world-leading geoscience databases.
The opportunities for Australian mining and its contribution to Australia’s prosperity will continue to expand as the populations of emerging economies, particularly in Asia, converge to those of developed nations and technology becomes more advanced.
While Australia has significant resource endowments, and an established comparative advantage in minerals and energy exports, these alone cannot guarantee future economic success.
The policy priorities and measures outlined in the MCA’s submission to this year’s federal budget are essential for positioning Australia for the next wave of mining investment and maintaining its position as the largest exporter of minerals and metals in the world.
