[Greens-Media] Greens call for end to mining subsidies

[Bennett, Ebony (Sen B. Brown)]

Tuesday, 2 May 2006

Greens call for end to mining subsidies

Greens Leader Bob Brown today called for an end to the special tax deals
being negotiated by primary industries.

"In 2001 the company tax rate was reduced from 34% to 30% in exchange
for the abolition of accelerated depreciation and a range of other
special tax concessions," Senator Brown said. 

"The argument at the time was that a lower rate and a broader base was
more efficient. But having delivered the lower rate, the Government is
once again caving in to industry interests determined to get special
exemptions."

"Over the last four years the government has quietly handed billions of
dollars back to the mining industry in the form of tax exemptions. This
is not tax reform, it is back room dealing," said Senator Brown.

In recent years the Federal Government has introduced the following tax
exemptions for the mining industry:
Tax concession	Cost in 2006-07	
Statutory effective life caps for selected assets in the oil, gas,
aviation and trucking industries 	$220 million	
Three year write off for expenditure on water facilities for primary
producers	$30 million	
Capital expenditure deduction for mining, quarrying and petroleum
operations	$20 million	
Prepayment rule for forestry managed investments	$25 million	
    Source: 2005 Tax Expenditure Statement, December 2005, The Treasury

"It is not surprising the mining industry is calling for more tax
concessions in the lead up to the budget, but it is entirely surprising
that an allegedly reformist government would allow its 2000 tax reforms
to be unwound so quickly," Senator Brown said.

"The Australian Greens believe that there is room in the taxation system
for special pleading, but such special pleading should be done in
public, and based on the public interest, not in private, and based on
the private interest."

"All Australian industries should have the same access to industry
development opportunities. The solar and wind energy industries can
deliver not just green energy, but green jobs, if only they were given
the same opportunities as the mining industry," Senator Brown said. 

Further information: Ebony Bennett 0409 164 603


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Ebony Bennett
Media Adviser
Office of Greens Senator Bob Brown
Mobile: 0409 164 603
Ph: (02) 6277 3170
Fax: (02) 6277 3185
ebony.bennett at aph.gov.au