31 August 2017

Premier must immediately rule out gold royalty increase.

The State Opposition has called on the Premier to rule out an increase in the gold royalty to fund Labor’s unaffordable election commitments.

Shadow Minister for Mines and Petroleum Sean L’Estrange said “Jobs growth, mining exploration activity and investment are at risk if Labor chooses to place an increased tax on the gold sector.”

“There is widespread speculation the McGowan Government has locked in increases to the gold royalty,” Mr L’Estrange said.

“Jobs growth is critically important and supporting the mining sector must remain a priority.

“In 2015 Premier McGowan promised the gold sector there would be no increase in the gold royalty rate under a Labor government.

“Furthermore, just prior to the election, Premier McGowan pledged there would be no new taxes or increases in taxes in Western Australia.”

Mr L’Estrange said that in October 2015, Mr McGowan claimed the GST distribution formula ultimately meant increasing gold royalties would provide minimal benefit to the State on the basis that for every dollar Western Australia would receive in gold royalties, 90 cents would be lost in GST.

“His only motivation to increase a gold tax must therefore be to fund unaffordable election commitments at the expense of jobs growth.

“If Mr McGowan does not rule out tax hikes on the gold sector, we fear next Thursday’s budget will contain another massive broken promise by this Government.”

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