Royalty Tax hike already impacting Small Businesses in QLD

Royalty Tax hike already impacting Small Businesses in QLD

As predicted, the Governments' royalty tax increase is damaging small businesses in Queensland, this extract is taken from an article written by Duncan Evans for The Courier Mail on January 20th:

Mackay small businessman Dallas Morris has been in mining for 30 years and says the state government’s new coal royalties have pushed him to reconsider new investments in his growing drilling repair and distribution business.

“I am not going to invest in a new $1m CNC machine knowing that next year and the year after we are not developing our coal mines,” the iCutter Industries services manager said.

“It is not cost-effective.”

He said his uncertainty flowed out of fear the Bowen Basin’s big miners would pull back their own investments in response to Treasurer Cameron Dick’s new royalty tiers, which introduce a top royalty rate of 40 per cent when prices hit more than $300 per tonne.

“We follow the mines,” Mr Morris said.

“Whatever the big miners are doing, we follow them and we are seeing and hearing the investments are not going to be there.”

iCutter Industries started out in a garage in Hucker Street in South Mackay but has grown to encompass two warehouses in Paget, Mackay’s industrial zone, and nine employees.

The business counts behemoths like BHP and Yancoal as clients as well as Rockhampton-based business Coldwell Drilling.

Mr Morris said he wanted to expand but his outlook on the sector had darkened.

“We are actually at a point where we need to expand now but I’m looking at the market now and I am a bit hesitant to do that, to buy new space.”

Mr Morris said his concerns were widespread across the mining services community.

“We need to be communicated to,” he said.

“All businesses need to be communicated to.”

Source: The Courier Mail

iCutter Industries are just one of hundreds of small businesses facing uncertainty due to the Government's Royalty Tax increase. When will the Government reconsider their actions?