From the Secretariat

The Federal Budget 2023/24 and Annual Returns 2022/23

DR ELIZABETH GIBSON, General Manager of the CMPA.

The Federal Budget 2023/24 was handed down by the Government on Tuesday 9 May 2023.

Of interest to Members would be:
• The independent strategic review will ensure the Government’s $120 billion infrastructure pipeline over 10 years is fit for purpose and the Government’s investment is focused on projects which improve long term productivity, supply chains and economic growth in Australia’s cities and regions. This 90day review of infrastructure projects currently in the pipeline is seen as necessary so that the Government can ensure that project costs are manageable. However, this Review will lead to increased uncertainty for the infrastructure sector until completed by Government. It is imperative that, at the end of this review, Victoria is not adversely impacted and major projects like Suburban Rail Loop, Airport Rail and the Inland Rail extension to Truganina continue to be funded.

• Roads of strategic importance will be funded in Victoria $60.7 million for 2023/24, over double that of 2022/23 ($24.9 million).
• The Heavy Vehicle Road User Charge will be increased which will decrease fuel tax credit expenditure (by Government) by $1.1 billion over four years. This will increase by 6 percent per year over three years to 32.4 cents per litre resulting in higher transportation costs which will likely flow through to consumers.
• Funding to establish a tripartite National Construction Industry Forum (NCIF).
• Mining, quarrying and prospecting rights: The Government has also announced its intention to amend the Petroleum Resource Rent Tax (PRRT) regime so that mining, quarrying and prospecting rights cannot be depreciated for income tax purposes until they are used (as opposed to such rights merely being held) and to limit the circumstances in which the issue of new rights over areas covered by existing rights can lead to tax adjustments.

Annual Returns 2022/23

CMPA has always sought prompt Annual Returns from Members to ERR and recognises in good faith that ERR has endeavored at the request of the Minister for Energy and Resources to subsequently make the process user friendly (see ERR’s Annual Returns article on p. 19).

Last year’s (2022) introduction of the new requirement for online submission via RRAMs of Annual Returns 2021/22 was a fiasco resulting in 500 Infringement Notices being unfairly issued by Earth Resources Regulation (ERR). The inference by ERR that the industry was being intractable is not borne out by previous years’ Annual Returns. Unfortunately, the process is now that complex that a third party is now recommended by ERR to submit Annual Returns. Page number 19.

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