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Ben Wyatt’s budget includes a higher tax rate on the gold sector. Photo: Mogens Johansen

Business groups say tax hikes will lock in pain

Gold miners have warned of devastating consequences from a higher royalty rate, including potential mine closures, while business groups have also taken aim at proposed payroll tax hikes for larger employers, after both were targeted in a $1 billion revenue grab by the state government in today’s budget.

Premier Mark McGowan said he was sorry about the tax increases, which backtrack on an election promise, but believed they were reasonable, after the government faced large write-downs to expected revenue.

Chamber of Minerals and Energy of Western Australia acting chief executive, Nicole Roocke, said many of the gold industry’s 25,000 employees would have their jobs put at risk by the move, which introduces a new 3.75 per cent royalty rate that applies when the gold price is above $1,200 an ounce.

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Comments

Belmont
How about the government becomes more efficient like business has to be. If people do not perform, they are made redundant or terminated for not meeting performance criteria. Additionally, there has to be fiscal responsibility and budget adherence related to outcomes from investment. Every government burns cash through ill-conceived ideas with no real benefit to the electorate or business. I would suggest that not a single politician is given a pay rise, similar to any normal employee who does not perform, if they do not deliver on their promises. Lastly, if you hire someone on their merits and what they say they can and will do, and then they fail, that is reason to terminate - why are politicians not subject to the same performance measures as ever other working person?

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