The 2022-23 Federal Budget highlights the significance of mining to the improved budget in 2021-22 and the ongoing contribution the industry will continue to make.
The strong performance of the mining industry is boosting the broader economy.
This means the Budget can provide the temporary and targeted measures to help alleviate cost-of-living pressures on households and support for small and medium sized businesses.
Extensive commitments made in the Budget to generate and expand export hubs in the Hunter, Pilbara, North and Central Queensland and the Northern Territory, upgrade freight corridors and support minerals development and clean energy are welcome. This is a generational investment for the nation and the communities in which mining operates.
With record low unemployment, targeted measures to address the skills shortage are necessary and timely. While industry welcomes continued investment in apprenticeships and traineeships – with the industry having delivered more than 6,700 new apprentices since late 2020 – the government needs to ensure there is no reduction in these roles in key mining occupations.
Greater economic participation of women is critical to achieve gender equity and support the productive capacity of the economy. Access to fully flexible, equal parenting payment leave for families aligns with the significant strides the mining industry has made to improve access to paid carer’s leave.
The establishment of a new $2 billion Regional Accelerator Program will improve infrastructure, manufacturing and industry development, skills and training, research and development, and education in the regions.
Funding for critical mineral processing projects and initiatives to accelerate other projects will expand Australia’s capacity to meet future global demand for critical minerals, and further enhance Australian mining’s position at the forefront of driving technological advances and lowering global emissions.
Investments to support First Nations skills, business and wealth creation will help maximise community outcomes from mining partnerships with Traditional Owners across Australia.
The $636 million to fund an additional 1,089 new Indigenous rangers and 88 new Indigenous ranger groups will support economic opportunities and environmental outcomes.
While industry and Traditional Owners have worked together for decades to support community aspirations, targeted Commonwealth funding to position Prescribed Body Corporations for the future and in Indigenous leadership and governance will help strengthen partnerships and broaden opportunities.
The decadal contribution of Australian mining to the economy is stellar – $2.1 trillion in resources export revenue, $246 billion in mining wages and 21 per cent of Australia’s GDP growth.
The industry can also be relied on to generate large fiscal returns to the economy, having contributed $132 billion in company taxes and $106 billion in royalties over the last decade from significant capital investments in regional and remote Australia.
The Budget is optimistic about labour productivity. To achieve this Australia needs enabling policy reforms, particularly modern workplace relations rules to foster more innovative and adaptable enterprises.
Ensuring the mining industry remains productive and competitive is 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.
