Resources sector worries about hung parliament mining tax while PM labels it ‘fiction’

The resources sector wants the Prime Minister to publicly rule out a mining tax even if Labor has to negotiate a minority government agreement after the next election, fearing it could be struck with new imposts if the crossbench demand them.

However, Anthony Albanese has given the Minerals Council of Australia a personal assurance he has no such plans and his office described it as a “fiction”.

WA Premier Roger Cook vowed in October he would not consider any new mining tax or royalty increase.

Mr Albanese was asked for the same commitment while in Perth at the weekend.

He replied that he backed WA’s resources industry, which was why his Government was pursuing production tax credits to help kickstart the critical minerals processing sector and had just announced hundreds of millions in financing for Iluka.

“We don’t want additional taxes. What we’re after is production tax credits to back in the industry,” he said.

“I’m not talking about what we’re not doing. I’m talking about what we are doing.”

He used a similar “what we’re not doing” formula of words in recent months after it emerged Treasury was modelling effects of possible changes to negative gearing, an idea the government has so far not taken up.

Minerals Council of Australia head Tania Constable said the sector needed a clear, unequivocal answer before the election on mining taxes.

“Australians face the very real prospect of a minority government next year, where anti-mining forces may have increased power,” she said.

“It is crucial the Prime Minister draws a line in the sand and rules out any mining tax. Australia’s future should not be held ransom to crossbench negotiations.

“If the government is serious about supporting Australian industries, it must set its sights on policies that create jobs, drive innovation and attract investment, not view mining as an easy target for higher taxes.”

A series of polls suggest if an election were held now, it would result in a hung parliament meaning Labor would have to negotiate to form a minority government.

The Greens have started laying out the policies they want to pursue if they held the balance of power, including a 40 per cent tax on mining “super profits” and increased royalties on gas and oil projects.

Independent MP Allegra Spender has produced a tax reform green paper outlining options for how future governments could seek to raise more revenue to tackle the Budget’s structural problems.

This notes tax changes to non-fossil fuel mining “could raise additional revenue that could fund tax cuts to encourage other investments” while warning any such movement would have to maintain incentives to invest.

Asked again on Tuesday to rule out imposing new taxes or levies on the mining and resources sector, a spokesperson for Mr Albanese said any suggestion one would be imposed was “fiction”.

“Firstly, we are only focused on being re-elected as a majority government. Secondly, we will not and have never suggested in any way, we will have a new tax on mining. This is fiction,” the spokesperson said.

“We are focused on delivering for WA, and that includes delivering production tax credits that will benefit all of WA. Peter Dutton voted against these in the House of Representatives a week ago.”