Additional C'wlth impost on WA prospectors disappointing

29/8/97

Mines Minister Norman Moore yesterday expressed his disappointment in yet another Federal Government impost on Western Australian prospectors.

Mr Moore said that the new tax on profits from the sale of mining leases was inappropriate in the present tough environment.

"It is unfair to impose more hardship on the battlers who are least able to afford this new tax," he said.

Mr Moore said that the State Government had been fighting the proposed amendments to Section 23(pa) of the Income Tax Assessment Act since it was announced in the 1996-97 Federal Budget.

"When the proposal was foreshadowed, we immediately recognised the disadvantages it could create for WA as prospectors are the grassroots of our mining industry," the Minister said.

"Prospectors have been responsible for major new discoveries throughout the State, including the Bronzewing Gold Mine near Wiluna."

The new tax, passed by the Commonwealth Parliament this week, means prospectors will be paying a tax on the increased value of tenements between August, 1996 and August, 2001. After 2001, tax will apply to the full value of any tenement sold.

Media contacts: Lisa Holland-McNair, Department of Minerals and Energy, phone (08) 9222 3572

Hartley Joynt, Minister's office, (08) 9321 1444