The government has proposed capping the amount of money that a company can spend on land survey work and restricting the amount a company may earn by buying up property for the purpose of building an industrial site.
The proposed changes would apply to any company that has received a licence to build an industrial development, as well as those that hold an industrial licence for agricultural land.
Key points:The Government has proposed to limit the amount that a mining company can earn by purchasing up land to build a farm, a commercial building, or an industrial complex.
A proposed cap on the amount the mining company may make from land survey would also apply to the purchase of land by a corporation.
Key pointsThe proposed changes to the way the mining industry is regulated would make it harder for small and medium sized businesses to operate, particularly those that are growing at the margins, the Government said.
It has also proposed introducing rules that will apply to all companies with a licence for industrial development and for agricultural property.
The proposed caps would apply for any company holding an industrial or agricultural licence, as opposed to just those that have an industrial license.
Under the proposed changes, any company with an industrial land survey licence would have to limit its spending on land surveying work to $3,500 a year for the next 12 months, the amount it earned by purchasing land.
The Government said it expected a range of business owners to benefit from the proposed restrictions.
“If you’re a small business owner, and you’ve got a large parcel of land that you’re developing, and it’s costing you $2,000 a year to maintain it, you might be thinking ‘well, if I’m not able to buy the land at $3.50 a square metre, then what am I going to do?’,” Environment Minister Josh Frydenberg said.
“So the Government has put in place a proposal to allow companies to limit their spending on this activity.”
So you’re not just restricting your investment in land surveiling, you’re also restricting your interest in that parcel of industrial land that could potentially be developed into a commercial or industrial development.
“And so you’re creating a situation where businesses are not able – as a consequence of the Government’s proposed changes – to get that investment to take place.”
But the Minister said the proposed caps were not necessarily aimed at all mining companies.
“The proposed measures are designed to protect the interests of all mining enterprises,” he said.
“They’re not intended to apply to small or medium sized mining enterprises.”
There are some who might think that, in the context of large-scale mining, there is an expectation that they’re going to be subject to the same restrictions that apply to those large-sized businesses.
“But that’s not the case.”
We’re not targeting small or small-sized mining companies, we’re not trying to target large-size businesses.
The measures are aimed at protecting the interests in Australia’s mining sector.
“Small and medium-sized companies are not exempt from the same regulatory measures that apply generally to large- scale businesses.”
He said the caps were part of the government’s ongoing efforts to modernise the mining and resource sectors, including by introducing a cap on industrial licences.
“This is not a time to be rolling back any of the reforms that we’ve introduced,” Mr Frydenburg said.
“These reforms are designed not only to protect Australia’s resource sector but to modernisation of Australia’s economy, so they will help grow the economy.”
“The mining sector is one of the biggest and most important industries in Australia.
It generates hundreds of thousands of jobs and contributes to the national economy and contributes significantly to national security and defence.”
Its very important to make sure that we do not take anything away from it.
“It’s also important that we are taking the best approach to protect our economy and our national security.”
As we look to modernising our industry, we’ll continue to modernize it, but we’ll also make sure we are ensuring that we’re making sure that our industry is sustainable.
“I think this is a very good way of protecting the interest of all Australians.”
The Minister said there were still several mining companies that did not need to be regulated under the new caps.
“A lot of those companies are small businesses that are very profitable, but there are also large- and medium-, large- size businesses, and there are some that are doing well, and I think we’ll have to be vigilant about that,” he noted.
“These measures will also help protect the future of mining.”
Topics:government-and-politics,mining-industry,government-elections,environment,government,government—in-government,environmental-policy,mineral-gas,mining,industry-and‑business,australia,nsw,aurnia-4305,vicsource ABC News (AU)