WA resources sector cheers federal budget as Jim Chalmers leaves industry untouched
Western Australia’s resources industry says it understands the importance of the mining sector in financing the country’s big spending after Federal Treasurer Jim Chalmers highlighted the impact of the ongoing conflict in Iran and rising oil prices on this year’s budget.
Federal budget documents show the majority of transport infrastructure spending in Western Australia is focused primarily on the proposed Westport precinct, with $552 million allocated to improving Sorull Road to connect with the proposed future precinct.
The contribution to WA looks small compared to the $3.8 billion for the Eastern Suburban Rail Line in Victoria and the $812 million allocated to improving the Bruce Highway in Queensland.
Within the scope of the 2026 National Defense Strategy, 14 billion dollars will be spent in the next 4 years and 53 billion dollars in the next 10 years through direct state investment.
This will include investing in Australia’s long-term naval capacity by purchasing nuclear-powered submarines and Mogami-class frigates, and developing the Henderson Defense Site as a world-class center of excellence for naval shipbuilding, with an initial $12 billion.
But some of the state’s biggest winners appear to be from the mining sector, which is celebrating Chalmers’ decision to make no changes to tax settings for resource projects.
Minerals and Energy Chamber WA president Aaron Morey said he welcomed the move.
“Australian resource companies already face one of the largest tax burdens in the world. We need to build a bigger economy, not bigger taxes to get back to redundancy,” he said.
“Turbocharging investment in the resources sector is Australia’s best chance of getting the budget back onshore.
“The federal government should be commended for prioritizing Australia’s reputation as a stable and reliable trading partner above short-term calls for short-term revenue cuts.
“Mineral and energy exports underpinned the budget surpluses achieved in 2023 and 2024, and our commodities continue to provide the foundations for future success.”
Morey emphasized the critical role of exports such as iron ore, LNG and gold in the search for liquid fuel and fertilizer amid conflict in the Middle East.
“Our national security increasingly depends on being a stable and reliable exporter of commodities,” he said.
“The world rewards reliable trading partners and Australia should take advantage of this.
“As global energy markets tighten, sustaining operations in the resources sector must be treated as a national priority.”
Minerals Council of Australia chief executive Tania Constable echoed that sentiment.
“The Government of Albania has sided with Australia’s largest taxpayer, supporting the country through uncertain times, by leaving mining tax settings unchanged in the federal budget,” he said.
“As well as not imposing new taxes, the government has also supported mining through the Australian Fuel Security and Resilience package, which will increase fuel security for the extraction and processing of minerals (particularly vital diesel supplies).
“This approach demonstrates that the government understands the enormous contribution of mining to the Australian economy, jobs and regional communities.”
