Chamber of Minerals and Energy WA chief executive officer Rebecca Tomkinson is calling for production tax incentives for critical minerals processing to be prioritised.
It comes as Federal Treasurer Jim Chalmers released the Mid‑Year Economic and Fiscal Outlook (MYEFO) on December 18, which reported a deficit of $26.9 billion for 2024–25.
The MYEFO also downgraded mining export earnings by $100 billion over the next four years, reflecting the decreased demand for iron ore.
“When the resources sector struggles, Australia struggles,” Tomkinson said. “The strong headwinds buffeting industry are reflected in the nation’s fiscal position.”
Tomkinson said CME would continue to support reforms that are positive for both the environment and businesses, calling on the Federal Government to legislate productive tax incentives for renewable hydrogen production and critical minerals processing.
“The road to net-zero should run through Western Australia – but it won’t without recognition that we are competing against jurisdictions that are rolling out the red carpet for downstream processing,” Tomkinson said.
In his announcement of the MYEFO, Chalmers said that while economic growth has slowed “more than expected”, he was confident in a soft landing for the country.
“Our economic plan is all about fighting inflation without ignoring the risks to growth,” he said.
“The Australian economy is on track for a soft landing, with the economy continuing to grow, a record for jobs created in a Parliamentary term, participation near record highs, real wages and household incomes growing again, the gender pay gap narrower than ever before and business investment at decade highs.
“We’ll continue to put a premium on responsible economic management with a focus on fighting inflation without ignoring risks to growth, repairing the budget, rolling out responsible cost‑of‑living relief and building a stronger economy into the future.”
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