The Federal Government has indicated it may not apply the Resources Super Profits Tax to high volume low value quarry products.
The Government has previously included products such as sand, cement, gravel, phosphate and lime, but recommendations by Treasury secretary Ken Henry have called for the industry to seek its exclusion.
With the tax being forced on the quarry industry, the Federal opposition claimed it would drive up house and food prices as construction and farming materials become more expensive.
However, Treasurer Wayne Swan called these claims ridiculous, saying that the Government is currently in talks with these industries and they may in fact do better under the new tax as they are hit heavily under the current state royalty system, he told ABC’s Insider program.
However, the quarry industry countered that at least 85% of the industry’s production does not come under mineral classification and thus are not taxed under the royalty programs.
The industry has been invited to make submission regarding its inclusion in the tax.
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