The Minerals Council of Australia (MCA) has warned that the Federal Government’s proposed doubling of FIRB fees to a maximum of $1 million will erode Australia’s ability to attract the capital needed across all sectors of the economy.
Australia is currently facing an investment shortfall with capital stock growth rates at record low levels.
The capital shortage is yet more acute in mining, which has been the largest source of economic growth in Australia over the last decade.
The MCA said that if Australia’s mining, downstream processing and manufacturing industry is to grow, the Government needs to address the high cost of doing business in Australia.
“To maintain the current production of existing mines, Australia needs at least $20 billion in capital every year,” Tania Constable, MCA Chief Executive Officer, said.
“For Australia to expand mining and benefit from growing demand for the spectrum of minerals essential for the transition to renewables – copper, zinc, nickel, gold and the raft of critical minerals needed for our sustainable future – substantial additional foreign investment will be required.
“The government’s proposed doubling of foreign investment fees works directly against this objective.
“Australia’s productivity challenge is only increased by higher hurdles for foreign investors.”
