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Resources industry facing budget uncertainty



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THE HON GARY GRAY AO MP SHADOW MINISTER FOR RESOUCES SHADOW MINISTER FOR NORTHERN AUSTRALIA SHADOW SPECIAL MINISTER OF STATE

MEMBER FOR BRAND

Media Release

Resources industry facing budget uncertainty

Shadow Minister for Resources the Hon Gary Gray AO MP called on the Government to rule out making any changes to the fuel tax credit scheme in its May budget.

The Liberal’s last budget killed business and consumer confidence, and we can’t afford to have the next Abbott/Hockey budget stoking business uncertainty at this critical juncture in the evolution of Australia’s mining boom.

The last budget was a disaster for the Australian people and the Australian economy. Business confidence has taken a big hit, particularly in the resources sector.

The Government needs to come out and quell the speculation around possible changes to the diesel fuel rebate under the fuel tax credit scheme.

Labor’s position on the diesel fuel rebate has been consistent.

The diesel fuel rebate is critical for mining, agriculture and fishing.

Diesel fuel excise aims to recover the cost of public road use — not off-road economic use.

The diesel fuel rebate works to prevent the taxation of a business input, which is an accepted principle of good taxation policy.

Unjustifiably taxing business inputs is inefficient. It distorts investment decisions, affects Australia’s export competitiveness, and creates uncertainty for businesses large and small.

Labor has supported legislation to ensure that the Government’s recent excise decision on fuel is rebated, preventing double taxation.

Around the country, as farmers sow their crop for the coming season, they should know now the circumstances they will face when their crop is harvested.

Unfortunately Tony Abbott has been too pre-occupied with his own political survival to give certainty to those who rely on this rebate.

WEDNESDAY 6 MAY 2015

MEDIA CONTACT: TINA SAMARDZIJA 0429 666 520