THE latest figures from the resource industry shows records tumble with an $8 billion increase in exports, however it’s not all good news as the Queensland Resources Council’s (QRC) quarterly sentiment survey highlights concerns about government policy uncertainty.

Every quarter, the QRC conducts its CEO sentiment survey that reveals what Queensland resources chiefs predict will affect their businesses over the coming year.

QRC Chief Executive Ian Macfarlane said the latest results showed, that for the fifth quarter in a row, regulatory uncertainty was the chief concern for the resource bosses.

“The most recent data shows that Queensland’s resource industry is alive and kicking, as records tumble with the QRC’s State of the Sector value index soaring a massive 78 percent in the December 2016 quarter, to the highest level on record,” Mr Macfarlane said.

“In the December 2016 quarter, the value of Queensland’s resource exports grew by an extraordinary $8 billion dollars, which is enough to build 24 new stadiums for Townsville, or two and half times the amount needed to pay the Solar Bonus Scheme’s stream of subsidies out to 2028.

“With Queensland’s population just under five million people, $8 billion is the equivalent of each of us getting a cheque for a $1,600.

“Over the past decade, the value of Queensland’s resources has tripled. That’s an extraordinary achievement that should see the industry feted as the backbone of the state’s economy.

"The impressive performance was driven by strong price increases for coking coal, thermal coal, lead, zinc and copper. Sadly however, it was not all good news in the report, the CEO sentiment index tells a different story and delivered mixed results.

“The impact of poor or uncertain regulation continues to act as a wet blanket for industry and has been the number one concern for member CEOs for five consecutive quarters, who warn that the real pain from regulatory uncertainty is felt in the long term,” Mr Macfarlane said.

Some of the member company CEO quotes include:

“Government policy is very volatile at present and it is difficult to allocate long lead capital with any certainty the legislation will be the same when the projects are delivered.”

“Resource industry companies need greater certainty with respect to regulation in order to commit to projects.”

“The current regulatory environment in Queensland is dreadful – in particular the environment department is acting as a ‘policeman’ rather than collaboratively working with companies to identify and resolve potential issues.”

Mr Macfarlane said, while the macro-economic outlook and access to capital had improved by 10 and 25 percent respectively since the March quarter 2016, the global macro-economy and social licence to operate remain major concerns for member CEOs.

www.qrc.org.au

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PUBLIC feedback is being invited by the Great Barrier Reef Marine Park Authority on a draft policy for cruise ship operations in the Great Barrier Reef.

The Great Barrier Reef Marine Park Authority’s draft policy brings together all current management arrangements for cruise ships operating across the Reef and promotes ecologically- sustainable activities.

THE House of Representatives Standing Committee on Economics today presented the report of its inquiry into Tax Deductibility.

The committee’s review focused on enhancing compliance in relation to tax deductions. Committee Chair, Mr David Coleman MP, said ‘the ATO identified $100 million of abuse in a single year through a review of the Work Related Expenses claims of about one in one thousand taxpayers. The committee sees considerable scope for improvement in this area and has recommended the ATO review its compliance activity in relation to WREs.’

In addition, the committee has recommended that the ATO undertake a detailed review of tax deductions to identify areas that are open to systemic abuse and overclaiming, and recommend amendments to law or policy where appropriate.

Mr Coleman said ‘while the committee sees opportunities to improve the operation of the tax system, and has recommended changes to strengthen compliance, the committee supports the ongoing ability of Australians to claim legitimate deductions.’

The committee recommended:

• The Australian Taxation Office (ATO) review its compliance activity in relation to WREs.
• The ATO be instructed to analyse each detailed subcategory of tax deductions and identify areas that it believes are particularly open to systemic abuse and overclaiming, ranking these in order of the size of the financial risk they represent to Government revenue, and recommending amendments to law where appropriate.
• As matter of priority, The Treasury provide a clear estimate of the actual cost to Government revenue of WREs so as to properly inform policy in this area.
• The ATO continue with technological development and progress on pre-filling of returns to support the implementation of the reform agenda and to simplify taxpayers’ interaction with the tax system, with the eventual goal to minimise, and ultimately remove, the need for taxpayers to amend pre filled returns.
• The Government continue its important work on the implementation of the G20/OECD Base Erosion and Profit Shifting (BEPS) recommendations to further strengthen Australia’s rules addressing tax integrity.

The report can be accessed from the Committee’s website.

Interested members of the public may wish to track the committee via the website. 

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THE Liberal National Party’s (LNP) support for a new ultra-supercritical coal-fired power station in North Queensland would deliver essential base load power and help to create hundreds of regional jobs, according to the Queensland Resources Council (QRC).

"In its 2017 Budget reply speech, the LNP’s pragmatic approach to the energy mix would secure cost-effective electricity with new coal technology for North Queensland and the state," QRC chief executive Ian Macfarlane said.

"If this region is to develop to its full potential and be the powerhouse of northern Australia, it must have its own stable power generation near Townsville to support the investments being made in hydroelectric and solar farms.

"The Palaszczuk Government turned away from a technology neutral approach and ruled out high efficiency, low-emission (HELE) plants in its energy plan, despite the global investment into the latest coal-fired power generation in countries such as Japan, Germany, China and India," Mr Macfarlane said.

"There are more than 1,000 of these HELE units currently delivering reliable and affordable electricity around the world and more than 1,200 planned, or under construction. Queensland has substantial reserves of high-quality, lower emission coal and it should take advantage of this resource to increase its international competitiveness.

"Growing the economy and attracting industry and jobs is a great way to make sure North Queensland grows."

www.qrc.org.au

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