New mining tax won’t reduce energy prices

The Federal Government is considering a tax on coal exports in response to high electricity prices. However, a new tax on coal exports is a bad idea that won’t work.

It should be obvious, but taxing coal sent overseas will not reduce energy prices here.

Power stations in NSW already buy their coal at discounted rates through contracts for supply. Prices for the coal used to generate electricity here in NSW are already up to 60% lower than global coal prices.

High energy prices require mature, sensible and disciplined policy proposals from decision-makers, not lazy new taxes.

Adding more taxes to coal exports will not reduce the price of coal here, or electricity here.

More taxes on mining will just hurt NSW mining communities and the Australian economy.

Learn the facts about taxes paid by mining companies

• Mining in NSW and across Australia is paying its fair share of tax. Taxes paid by Australian mining companies are high and growing.
• Company tax and royalty payments from mining companies have increased yearly for the past five years, reaching $43.2 billion in 2020-21.
• More than 25% of all company taxes paid to the Federal Government now come from mining companies.
• In NSW, mining royalty payments to the State Government have doubled since 2020 to more than $4 billion this year.
• Higher taxes on mining won’t lower energy prices. Taxes make things more expensive.
• More taxes on mining will hurt NSW mining communities and the Australian economy.

What is at risk?

A new tax would hurt mining, hurt the economy and ultimately hurt all Australians.

Coal is NSW’s most valuable export by far and is set to raise over $4 billion in royalty payments alone this financial year to the NSW Government.

The industry also pays billions more in company taxes to the Federal Government.

Adding more taxes to the already heavily taxed coal sector would penalise a critical industry, increase production costs, damage our global competitiveness, and undermine our reputation as an investment destination.

Authorised by S. Galilee, NSW Minerals Council, Sydney