SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY
SENATOR FOR WESTERN AUSTRALIA
MEDIA RELEASE
11 February 2025
GREATER UNCERTAINTY, REDUCED COMPETITIVENESS FOR WA RESOURCES SECTOR
The Albanese Government has again confirmed it doesn’t have Western Australia’s best interests at heart – or understand the unique competition issues facing the resources sector there.
Labor and the Greens joined forces last night to pass the Future Made in Australia (Production Tax Credits and Other Measurers) Bill, despite concerns raised by stakeholders over its ambiguous drafting and overregulation.
They also voted against a Coalition amendment, moved by Senator Dean Smith, aimed at providing businesses much needed clarity and protection from political interference.
That amendment excluded any requirement for a union agreement, a reconciliation action plan, or Indigenous or environmental consultation beyond that already required by law, to qualify for a tax credit under the Bill.
It also made clear that companies could not be penalised by failing to meet these requirements by receiving a reduced tax credit.
Companies now face an unpredictable approval process, judged against rules giving effect to ‘Community Benefit Principles’ that are yet to be revealed by the Treasurer – with the obvious risk of politicisation.
It was made very clear to the Senate Inquiry into the Bill that it poses a major threat to the international competitiveness of Western Australia’s resources sector.
Labor’s recent Resources and Energy Major Projects Report confirms that 81 major Western Australian resource projects worth $119 billion are now stalled, putting 47,000 jobs at risk.
Rather than combatting delays and declining investment, the Albanese Government’s new legislation adds complexity, excessive compliance costs, and a regulatory burden that will only make matters worse.
The Coalition will be watching closely as the Treasurer makes public the Community Benefit rules.
Comments attributable to Senator Dean Smith:
“The Albanese Government risks making WA’s world-class resources sector uncompetitive with red and green tape.”
“Instead of providing certainty for investors, Labor has created an undefined, highly politicised tax credit scheme that could force businesses into union agreements and other regulatory requirements just to qualify.”
“Industry leaders, the WA Government, and major business groups all raised serious concerns about the impact of these new conditions – Federal Labor simply ignored them.”
“Future Made in Australia continues to be nothing more than a slogan—because instead of driving growth in WA, it’s likely to drive investment out and into the hands of our competitors.”
ENDS