THE federal government should avoid making “policy on the run” and take a long term approach to tax reform aimed at making Australia more competitive, according to the head of one of the world’s biggest gold miners.
Mark Cutifani, the Australian-born chief of AngloGold Ashanti, this week joined critics of the Gillard government’s approach to tax reform, saying he did not believe Australia should “jump in early” and establish a carbon tax.
He described the mooted carbon tax and revised minerals resource rent tax as worrying evidence of a short-sighted approach to tax reform.
“I still remain very concerned that, even with the negotiation of the restructured MRRT, we are still not taking a long term view as a country,” he said. “Any new tax that reduces our competitive position has to be very carefully thought through.
“I’m just worried that we appear to be discussing policy on the run,” he said.
He said he believed it was “way too early” to be putting a price on carbon, and that the focus needed to be on getting the “right mechanisms”, including tax breaks, to encourage more efficient energy use and reduced carbon emissions.
“In that context, I think it’s important that any tax that looks at energy should be one based on consumption … and how you incentivise companies to adopt energy efficient new technologies,” he said.
On the mining tax, he said he was “not naïve enough” to believe that the current exemption of minerals such as gold would not be revisited over time.
Mr Cutifani’s comments come ahead of the first meeting in Perth next week between miners and the federal government’s mining tax policy transition committee chaired by Don Argus.
The committee expects to conclude talks with industry by the end of the year, so legislation can be introduced next year.
Junior iron ore miners have been especially critical of the proposed tax on coal and iron ore as an unfair attack on their businesses.
Mr Cutifani’s comments also coincide with the appointment of Greens leader Bob Brown and fellow Green Christine Milne to the government’s new climate change committee. Three ministers and independent Tony Windsor will also sit on the committee, and will be advised by four independent experts. The coalition has refused to participate.