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Mining industry has a vital interest in tax reform yet it will only have one representative at tax summit



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-S. AUSTRALIA.,/'- —_'X\sxxx\ . .•Z Z Z Z Z /'f - xxxx"

THE SENATE

SENATOR PETER DU RACK, Q C DEPUTY LEADER OF THE OPPOSITION

PRESS RELEASE in t h e s e n a t eSH AD OW MINISTER FOR RESOURCES A N D ENERGY 24/85

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The mining industry has a vital interest in tax reform and yet it will only have one representative at next week's Tax Summit.

This starkly contrasts with the union representation of thirty. The coal industry - which is Australia's largest export industry - will not have any separate representation.

It is clear that the government sees the mining industry as a never ending source of revenue to dissipate on its ever increasing expenditure. .

The oil industry alone is contributing about 10 per cent of the federal budget and since it came to office the Hawke Government has imposed a tax on new oil, announced the resources rent tax and is now proposing a $5 million

signature bonus on highly prospective oil permits and a $5 million premium for retention leases.

In addition it has increased excise on fuel by over 3 cents a litre instead of reducing fuel by 3 cents a litre as it promised to do.

The government's preferred Option (c) is the last straw.

Its proposed 12.5 per cent consumption tax will apply on top of existing taxes on fuel and there will be no exemption for fuel used in the process of production. This will have horrific consequences for the mining industry both because of j

its great reliance on fuel and the cost of freight. The government's further proposal to impose a tax on fringe benefits received by employees on the employer without that impost being even a tax deduction itself will be another major cost to production particularly because of the extent of housing that is provided by mining companies on mining sites. The government should listen very carefully to what the loan

representative of the mining industry has to say at the Summit.

It should abandon its plans to place further tax burdens on an industry which has come to the end of its tether as a source of golden eggs to be squandered by government.

BRISBANE

27 JUNE 1985 .

CONTACT: ROB HADLER 062-727088/727145