Victorian and Western Australian State Budgets

Victorian and Western Australian State Budgets

In recent weeks we’ve seen both the Victorian and Western Australian Governments deliver budgets for their State. Both have included significant investments in the energy and resources sector. 

In Victoria, the budget has signalled the importance of the mineral industry to regional development. Victorian mines directly contribute $510 million into the state economy in 2020-21. Initiatives include:

• $7.4 million to assist in growing the critical minerals industry. This will fund minerals development grants programs, investments in geoscience data and investment facilitation to search for and develop rare earths and minerals that are critical to manufacturing renewable energy components and other advanced manufacturing sectors;
• $7.8 million has been earmarked to support the strong regulation of gas resources as the state looks to reduce its reliance on natural gas and transition to more sustainable options;
• $2 million to streamline minerals and extractives regulation. This is aimed at helping to provide affordable materials for infrastructure and housing projects; and
• The budget also confirmed that taxes imposed on the mining industry will continue, with the gold royalty expected to deliver $140 million in 2022-23.

Western Australia’s budget has significant investments to expand export markets and support the development of certain sectors and improve infrastructure and transport. It includes:

• $332 millions to upgrade Geraldton Port;
• $250 million towards the Pinjarra Heavy Haulage Deviation;
• $120 million to upgrade Moorine Rock to Mount Holland road to support the Covalent lithium mine;
• $80 million towards the existing Investment Attraction Fund to support industry-led diversification proposals in new and emerging industries;
• $78.1 million for supporting infrastructure at Lumsden Point in the Pilbara;
• $52 million to construct a supply base to support oil and gas operations in the Browse Basin and chemical storage facilities in Broome;
• $50 million to increase the Industrial Land Development Fund to spark private investment in new growth opportunities;
• $50 million to expand the capacity of the Great Northern Highway between Newman and Port Hedland;
• $36 million towards the Mid-West and Great Southern Secondary Freight Network Program; 
• $20.2 million to raise the capacity of the Department of Mining, Industry Regulation and Safety’s Resources Advice and Regulation Services;
• $17.1 million to expand Western Australia’s international trade offices and grow export and investment market opportunities;
• $15 million to support the expansion of the Port of Port Hedland;
• $12 million for the WA-Array program that provides imaging of geology to help exploration companies identify new resources;
• $10 million towards a potash industry royalty rebate scheme;
• $6 million to the Minerals Research Institute to research strategic opportunities in critical minerals and clean energy technologies;
• $5 million to the Centre for decommissioning Australia to support the development of an LNG decommissioning industry;
• $2.9 million for post grant mining titles compliance; and 
• $1.8 millions to support a Mining Warden to facilitate greater mineral exploration;

The sector contributes over $12.5 billion to Western Australia including  $10.3 billion in iron ore royalties and $915 million in shelf grants from oil and gas projects. 

Both budgets highlight the significance of the sector to state economies, both in terms of income and employment and future opportunities.