WA Premier Roger Cook echoes concerns as industry alarm grows over Albanese’s Budget impact of CGT overhaul

WA Premier Roger Cook has echoed industry concerns that Anthony Albanese’s sweeping changes to capital gains tax could deter foreign investment in the State’s mining industry.

The Premier is under pressure to intervene from industry groups, who want a carve-out for junior explorers.

Mr Cook said foreign investors were also wary.

“We want to make sure that it doesn’t disincentivise both international investment in our major projects, but also exploration by our small miners,” he said on Wednesday.

The Budget plan to replace the 50 per cent CGT discount with a discount linked to inflation, and a minimum 30 per cent tax on gains, could almost double the tax payable on shares sold after a company makes a discovery.

Mining executives claim it means the risk of investment could outweigh the potential reward.

Mr Cook confirmed several have raised the alarm with him.

“It’s been raised with me by investors, both domestic and foreign, that that could potentially put a disincentive in place for foreign investors who have been central to, particularly for bringing to life some of our big projects, which are fundamental to job creation in WA,” he said.

“Obviously that would be a concern if it does put a disincentive on that foreign investment.”

Mr Cook is the second State leader to raise concerns about the Federal tax overhaul, after NSW Premier Chris Minns said workers were being over-taxed due to bracket creep.

Mr Cook indicated he had raised his concerns directly with the Prime Minister. “Not in the last 72 hours, but obviously the Prime Minister was in town last week, and we had an opportunity to talk there about that and other issues,” he said.

The Association of Mining and Exploration Companies is meeting Treasury officials in Canberra on Friday and has written to the Premier, warning him that the change “threatens to undo the hard work . . . to find the mines of the future.”

AMEC chief executive Warren Pearce said only one in 1000 drill programs were successful and urged Mr Cook to add his voice to calls for a carve-out.

So far, the Prime Minister and Treasurer Jim Chalmers have indicated only that exemptions are being considered for tech start-ups.

“Premier Cook and the WA Government understand more than most how critical our industry is to the future of mineral discovery in Australia,” Mr Pearce said.

“We’re also talking to all State and Territory governments, asking them to step forward to protect their economy from potentially devastating impact.”

Chamber of Minerals and Energy boss Aaron Morey said the next generation of mines and jobs was on the line.

“CME is engaging closely with the Federal Government to make the case for settings that continue to support investment into Australia’s resources sector,” he said.

Earlier, the Premier told a Perth mining summit that he was often frustrated by decision-making in Canberra when he was asked whether the resources sector was under siege by policy changes.

“I don’t think a day goes by when a Western Australian premier doesn’t get frustrated by some of the politics that they see in Canberra,” he said.

“It’s part of the federation that a lot of people on the East Coast don’t understand what’s going on in WA. They haven’t historically, they don’t today.

“So it’s important that as the Government continues to consult and refine the tax laws . . . they talk to industry about the impacts of those announcements or the potential impacts and ensure the laws ultimately don’t produce outcomes that they didn’t intend”.

In Perth last week, Mr Albanese and Dr Chalmers stridently defended their Budget but also said consultation was continuing.

“It was not possible to have as much consultation before budget night as occurs with tax policy, and we’re using this period of this week, next week as well, to have that consultation with start-ups,” Mr Albanese said.

“We’re big supporters of start-ups and venture capital.”