The Chamber of Minerals and Energy of Western Australia (CME) has backed calls for a 25 per cent discount to the mining revenue assessment in the current GST calculations in its submission to the Productivity Commission’s Inquiry into Horizontal Fiscal Equalisation (HFE).
CME Chief Executive Officer Reg Howard-Smith said fiscal policy should reward productivity and economic growth, but this did not occur under the current HFE policy.
“By delivering equitable government service delivery in every state, regardless of local economy and workforce participation, the HFE policy provides no incentive for people to move to areas of economic growth or for governments to enact policies to attract investment and encourage growth,” he said.
Mr Howard-Smith said the redistribution of funds away from the state has come at the expense of State Government investment in infrastructure and services, such as roads, ports and town development to support Western Australia’s economic growth over the past decade and into the future.
He said CME was pleased there was unanimous agreement for a discount to mining revenue from the WA Government, the Chamber of Commerce and Industry of Western Australia and the Minerals Council of Australia.
The Productivity Commission’s Draft Report is due for release later this year.