Posted November 26, 2015 15:50:57

Cutting the GST for mine rehabilitation bonds does not decrease the economic assurances for mine remediation, the Queensland Resources Council (QRC) says.

The Atmosphere Department no longer calls for miners to pay GST of 10 per cent on the rehabilitation bonds they lodge with the Queensland Government.

The modify took effect on October three.

Companies which have already paid the GST may request a refund, the division stated in an data sheet circulated to mining businesses and posted on its internet site.

QRC chief executive Michael Roche said it was wrong of anti-mine campaigners Lock the Gate Alliance to say the financial assurances held by the State Government to make certain that mines are effectively remediated had been lowered.

“Removing GST payments doesn’t affect the amount that the State Government holds in economic assurance. It corrects an accounting error,” he mentioned.

The Queensland Government holds $ five.38 billion in rehabilitation bonds.

“GST is collected as a tax for the Commonwealth, it can’t be spent on economic assurance and it is extremely hard to understand why Lock the Gate is pretending that ought to occur,” Mr Roche said.

“The NSW Government has lengthy recognised this and consequently has specifically excluded GST from its monetary assurance calculations.

“As the [Queensland] Division of Atmosphere Heritage and Protection is registered for GST purposes, it no longer needs to collect the GST.

“Most importantly, it is illegal to commit GST cash on monetary assurance.

“Lock the Gate clearly does not comprehend how Australia’s tax method functions.”

Lock the Gate Alliance president Drew Hutton mentioned he accepted the amount of income in rehabilitation bonds would not be decreased.

“But mining companies are still receiving off much more lightly if they now don’t have to pay 10 per cent GST,” he stated.

“The fact remains that some business specialists and even the Queensland auditor-basic have said that the Government does not hold adequate monetary assurances to guarantee correct mine rehabilitation.”

Subjects: mining-environmental-issues, mining-rural, mining-industry, states-and-territories, tax, qld, australia

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