16 November 2022

Any new mining tax will hurt our economy and international reputation

Whitehaven Coal calls on the Federal Government to rule out a new ‘windfall’ profits tax on Australian thermal coal exports.

Further taxing our coal exports won’t make electricity cheaper for Australian consumers, it will just cost jobs and undermine our reputation as a reliable trading partner. The rising cost of living is something the Government must address but a new tax will never be a cure for high domestic energy prices.

From the Government’s proposed industrial relations and pattern bargaining changes, to the implementation of what amounts to a carbon tax through the Safeguard Mechanism, its management of the Environment Protection and Biodiversity Conservation Act framework and now, a potential additional tax on coal exports, there are ominous signs emerging that the Government is taking Australian mining for granted.

The compounding nature of the measures the Government is actively considering, or has refused to rule out in the case of a new mining tax, is bad news for jobs and investor confidence and is hard to reconcile with Labor’s stated support for Australian mining – including coal – in its pre-election policy platform.

An internationally competitive and prosperous mining sector has underpinned our economy for decades and helped stave off the worst impacts of the COVID pandemic. The mining sector already pays more company tax than any other sector in Australia and it accounts for nearly a third of the value of all company tax paid to the Government. Whitehaven alone has paid or will pay $1 billion of taxes and royalties in relation to FY22 and expects to pay more than $2 billion of taxes and royalties in relation to FY23.

The Government must clarify its position on a possible new tax to reassure our workforce, our suppliers, our significant Australian retail investor base and our international joint venture partners in Japan and elsewhere who rely on us for stable and continuing energy supply.

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