tax gunner gov, page-3

THE Gunner Government has flagged changes to mine royalty collections from the current profit-based system.

In a speech to the mining sector, Mr Gunner said he wanted a “mature discussion” about a royalty system.

Some in the resources sectors pay no royalties because they record no profits.

“I am concerned with mines that open, make no reportable profit and close quickly, often leaving behind a legacy of people left out of pocket,” he said.

“These mines make little contribution to the Territory taxpayer for resources they rightly view as theirs.

“I want to create an environment where mines are sustainable … contribute over the long term to our economy … and allow workers time to hone their skills, learn their trades and provide sustainable futures for their families.

“This could mean a new royalty system promoting sustainability- a mixture of profit-based and ad valorem, for example.”

Ad valorem would mean adding a percentage rate based on what is extracted before sales or profit.

For example, the recently opened Edna Beryl mine in Tennant Creek would pay tax on an estimated $3 million on gold whether it is processed or sold.


Minerals Council NT executive director Drew Wagner.
Minerals Council NT executive director Drew Wagner said the devil was always in the detail but welcomed the discussion.

“The industry welcomes any discussion that attempts to attract and retain investment in the minerals sector across the NT, and it would seem that if we can improve the current framework, then an adjusted royalties structure may do just that,” he said.

In 2016-17 the resources sector contributed more than $3.6 billion — a record for the Territory. There are currently 17 mining projects in various stages of approvals processes in the NT despite exploration expenditure at its lowest levels since 2005.