PTG report lays resources tax groundwork: now for heavy lifting

Date issued: 21 December 2010

The Policy Transition Group (PTG) report into the design and implementation of the Australian Federal Government’s proposed minerals resources tax has laid important groundwork for an effective outcome, CPA Australia has said.

'The PTG report is an important step, addressing as it does, a number of the key issues that have proven so problematic since the government proposed resource tax reform earlier this year,' said Paul Drum, head of business and investment policy, CPA Australia.

'The PTG’s comprehensive consultation and detailed report charts a clear course by which the government can navigate the issue.

'The establishment of an implementation group must be a priority and we’re encouraged by the government’s stated intention to consider the early establishment of such a group.

'It is important to continue drawing on the expertise of key stakeholders as there is still a long way to go before this issue is resolved.'

Mr Drum said the PTG’s treatment of the state royalties issue was critical.

'Resolving the issues around state royalties, especially the crediting of royalties, will be absolutely crucial to successful reform of the resources tax structure. The PTG report delivers the government a policy and technical solution and it is now with the government to implement, with the Council of Australian Governments as the obvious vehicle.'

Mr Drum said there were some areas that the PTG report could have addressed more fully.

'CPA Australia is disappointed that the PTG has not fully supported the case for more incentives for smaller miners and explorers that would encourage further exploration and mining activity. This is something we emphasised in our submission to the PTG,' he said.

Australia’s economic wellbeing would be greatly influenced by the outcome he said.

'The resources sector was critical in keeping Australia from recession during the global downturn and will continue to be an engine for continued economic growth.

'While the aim must be for the whole community to benefit from Australia’s wealth in natural resources caution must be exercised to avoid long-term harm to the industry responsible for realising that wealth.'