Kristina Keneally Says Tax on Mining Would Lead to Job Losses

By Joel ScanlonMar 7 2011

The Premier of New South Wales Kristina Keneally is on a road trip in Hunter Valley gathering votes in what was once a Labor stronghold. In Newcastle she said that the new state based tax on mining profits being proposed by the Shadow Treasurer Mike Baird would result in a loss of jobs.

This was in response to the state opposition plan to overhaul the state and federal taxation systems. Mike Baird said that while states raise 16% of the taxes they are handling 40% of the services offered to the mining industry. That is why it was necessary to move to a profits-based tax on mining to replace the current royalty system.

Premier Kristina Keneally disagrees. She said that 29,000 people were directly employed in the mining sector in New South Wales and about 80,000 were indirectly employed by the mining industry. If the current royalties system was replaced, Hunter Valley itself would lose 12,000 jobs.

This would happen because miners would then prefer to work in Western Australia and Queensland as compared to New South Wales.