PERTH (miningweekly.com) – The resources sector has assisted in pushing the federal government back into black, with Finance Minister Mathias Cormann on Tuesday reporting a surplus of A$7.1-billion.

Cormann furthermore predicted a surplus of A$11-billion for 2020/21, a A$17.8-billion surplus for 2021/22 and a A$9.2-billion surplus for 2022/23.

The return to a Budget surplus on July 1 is the first since the 2007/8 global financial crisis hit.

The federal government also announced measures to increase and expand access to the instant asset write-off, which is expected to benefit some 3.4-million businesses that have a turnover of up to A$50-million a year. These companies will be able to immediately deduct eligible assets costing up to A$30 000, enabling them to grow.

Further, the federal government also announced A$100-billion worth of infrastructure investment over the next decade.

The Minerals Council of Australia (MCA) said that the Budget surplus would not have been achievable without the strong minerals sector, with MCA CEO Tania Constable pointing out that the industry had paid A$18.6-billion in company tax in 2017/18 alone.

“A stronger Australian minerals sector continues to underpin the federal budget position, with company tax receipts driving an A$8-billion increase in revenue over the next four years. 

“This is the equivalent of a world-class hospital delivered by Australian mining in every state and territory,” Constable said.

She noted that new funding commitments for regional infrastructure will deliver improved freight routes, access to ports and airports. 

However, Constable said that the government’s decision to retain the Biosecurity Import Levy will penalise the mining industry and other sectors that create jobs in regional Australia by increasing costs on imported machinery and other goods. 

Meanwhile, the Australian Petroleum Production and Exploration Association (Appea) applauded initiatives in the Budget to support the delivery of new domestic gas supply into the east coast market.

“Appea welcomed the allocation of A$8.4-million to support feasibility studies to accelerate gas supplies from the Northern Territory to the east coast market by opening the Beetaloo sub‑basin for exploration and development,” said Appea CEO Andrew McConville.

Appea also welcomed A$25-million over four years in funding to Murdoch University to establish the Harry Butler Environmental Education Centre to grow understanding of the positive relationship between economic development and environmental sustainability.

“The centre can continue Harry Butler’s legacy as a great Australian who worked closely with the oil and gas industry for more than five decades,” McConville said.