NT mining calls for consultation instead of giant tax grab

NT Government plans to manipulate tax rules will discourage the mining investment needed to drive the postpandemic reconstruction and damage the job prospects of Territorians.

The government’s sudden plans to change the law signal an unfair massive tax grab despite a clear Supreme Court 2019 ruling that security management deposits are a legitimate operating cost to be deducted from royalties.

The NT Government states that it wants more mining investment, yet its plan will undermine investment confidence and further put at risk the prospects of many thousand mining workers in the Territory.

The Government is also ignoring the advice of its own post-COVID reconstruction commission that ‘The Territory Government needs to increase industry confidence to invest by providing certainty, clarity and the necessary frameworks for investment’.

The respected Fraser Institute ranking of investment destinations released today further shows how fragile confidence is with a drop in the NT’s standings.

Security levies are important, and MCA NT has repeatedly called on government to work with the industry on allocating monies put aside for rehabilitation in a considered program that addresses environmental challenges and provides new job opportunities.

The Government should put its planned giant tax grab on hold and talk to the industry about a fair solution which does not damage future investment and jobs.

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