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Taxpayer assistance for mining 'negligible': Productivity Commission

30 June, 2014

The recent release of the Productivity Commission's annual Trade and Assistance Review clearly states that the mining industry receives 'negligible' government assistance.

The independent Productivity Commission states explicitly on page 73: "The estimated effective rate of assistance from tariff and budgetary assistance for mining is negligible."
The Commission concludes: "The effective rate of assistance — net assistance per unit of value added — was around 4 per cent for the manufacturing sector, over 2 per cent for the primary production sector and less than 1 per cent for mining."
The Commission finds that the limited budgetary assistance is "mainly in the form of R&D tax concession programs and assistance through CSIRO". This investment is a fraction of the mining industry's R&D spending of more than $4.1 billion last year alone. It should also be noted that the R&D tax concession is available to all industries – not just mining.
"The Productivity Commission report provides incontrovertible evidence that Greens Party claims that the mining industry receives taxpayer subsidies are complete garbage."
The report comes just days after a report by the research wing of the Greens Party, the Australia Institute on alleged subsidies to the mining sector was exposed as containing the most basic errors, omissions and distortions.

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