A report in The West today points at a useful new lobby group which, if the tax credits bill is passed, could benefit AVL in two locations; at mine and at the proposed vanadium pentoxide processing plant in Tenindewa.
Minerals Council of Australia backs critical mineral production tax credits at Senate hearing
Adrian RausoThe West Australian
Thu, 23 January 2025 3:58PM
Tianqi Lithium and IGO’s Kwinana lithium hydroxide plant stands to benefit from the tax credits. Credit: Tianqi Lithium/Tianqi Lithium
The mining lobby group most sceptical of the Albanese Government’s $7.1 billion of tax credits for miners over the next decade has now publicly said it is on board with the policy.
Minerals Council of Australia general manager of tax Ross Lyons told a Senate economics legislation committee in Canberra on Thursday the lobby group supports processors of critical minerals receiving a tax incentive.
“We support the bill because the bill is going to help to reduce the cost of production for people that develop facilities downstream,” Mr Lyons said.
“We’ve got member companies that have existing downstream facilities — they’re already invested — so they will benefit from the critical minerals tax incentive when it commences.
“We’ve got a lot of members that are mining that aren’t eligible for the critical minerals production tax incentive in consideration of whether they go to downstream processing as well. [The production tax incentive] will assist in the decision making.”
The production tax credit scheme — spearheaded by MCA’s rival the Association of Mining and Exploration Companies — will see downstream processors of critical minerals, like lithium and rare earths, receive a 10 per cent tax credit per year for up to 10 years.
MCA boss Tania Constable earlier this month lashed Mr Albanese over the tax incentives, saying the Prime Minister is incorrectly claiming they would be paid only if its recipients produce successful outcomes.
“The Prime Minister’s claim demonstrates a misunderstanding of how the production tax incentive actually works,” she said.
“The assertion that it only pays out on success needs immediate clarification. This incentive is designed as a refundable tax credit, meaning payments are made regardless of whether a company is profitable.
“It’s tied to operating costs, not success, revenue, or profitability or even the commencement of construction.”
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