CCIWA moves to end talk of new resource taxes as Treasurer Jim Chalmers assembles economic roundtable

WA’s peak business lobby has warned the engine room of the nation’s economy could be pushed “further over the edge” if Jim Chalmers’ economic roundtable proposes higher taxes for the mining and energy sectors. The Treasurer will convene a meeting of industry experts, business leaders, unions and policymakers for talks at a national economic summit in Canberra next month aimed at jump-starting Australia’s dire levels of productivity. But representatives from some of the nation’s biggest resource companies have been locked out of the three-day meeting. They instead met with Resources Minister Madeleine King late last week as part of a round of consultations among stakeholders ahead of the summit. The Chamber of Commerce and Industry WA on Sunday sought to fend off contentious proposals for a tax on the export of fossil fuels that could potentially raise $50 billion. Former treasury secretary Ken Henry — now chair of the Australian Climate and Biodiversity Foundation who has been invited to Dr Chalmers’ roundtable — has renewed calls for a carbon tax, lashing former governments for dropping the tax. “It still boggles the mind that we had the world’s best carbon policy and then, for purely political reasons, decided that we can afford to do without it,” he told the National Press Club last week. Dr Henry, who authored the Henry Tax Review in 2010 to guide tax reforms over the next 10 to 20 years, also said there needed to be more “spending discipline”. Resources companies, which account for the lion’s share of national exports, fear they could become targets at the summit to offset tax cuts in other areas that will help attract investment, boost productivity and deliver reforms that could reshape Australia’s reliance on income taxes. CCIWA acting chief executive Aaron Morey said Australia’s global competitiveness was already being eroded daily as companies shift investment to more favourable jurisdictions overseas. Mr Morey said the lobby was concerned by proposals to target miners, who he said have paid $395 billion in taxes and royalties to governments over the past decade. “Increasing the tax burden would take an already high-cost, high-risk investment environment and push it further over the edge,” he said. “Industrial relations changes have increased costs and complexity. Approvals processes are gummed up in ever-growing bureaucracy. “Energy is no longer a source of competitive advantage. And businesses in Australia face one of the highest overall tax burdens in the developed world. “Mining supports thousands of regional jobs, underpins our export earnings and generation of wealth, and delivers the investment that lifts productivity and wages across the broader economy. “Instead of higher taxes, the upcoming economic roundtable should be focused on repairing our global competitiveness.” Attorney-General Michelle Rowland on Sunday moved to head off a revolt from miners, saying the Government was “not looking” at possible new taxes on the sector. While the heads of the likes of BHP and Fortescue were not invited to Dr Chalmers’ summit, former WA treasurer Ben Wyatt — who now sits on the boards of Rio Tinto and Woodside Energy — was on Friday named among the 24 delegates. Dr Chalmers said the talks would focus on resilience, productivity and budget sustainability. “It’s an outstanding group of people who we believe will make a big contribution to the future direction of economic reform,” he said. “While we can’t invite representatives from every industry or organisation, everyone has the chance to have their say in this process with online submissions still open.”