The Western Australian Government is reducing the Mines Safety Levy by 20 per cent from July 1, 2020 to provide relief to mining companies.
Mines and Petroleum Minister Bill Johnston has directed the current rate of 21 cents per billable hour to be reduced to 17 cents.
Billable hours reflect the number of hours worked at a mine site over the financial year. It is used as the basis for calculating the levy charged to the mining company.
The levy funds safety and health regulatory services for the state’s mining industry.
Minister Johnston said the WA Government is committed to worker safety and promoting a healthy workplace culture across Western Australia’s mining sector.
“The reduction in the mine safety levy will help support mining companies during this difficult time,” he said.
Chief Executive Officer of the Association of Mining and Exploration Companies (AMEC), Warren Pearce, said the announcement is welcome news for the mining and exploration industry and will provide a small cost reduction for companies when it is most needed.
“This change will not impact the ability of the Department to carry out its critical role as a safety regulator, and our industry remains 100 per cent committed to ensuring that all our operations maintain the highest safety standards,” Mr Pearce said.
“Since its introduction in 2010 the levy has fluctuated considerably, but today’s announcement draws it back down below the 2017/18 rate.”
The Mines Safety and Inspection Levy Regulations 2010 were introduced to recover the costs of administering the Mines Safety and Inspection Act 1994 and levy rate has fluctuated considerably over the last 10 years.
Minister Johnston noted the resources sector is playing an important part in ensuring Western Australia, and the rest of the country, can recover after COVID-19.
“We will continue to work with industry to identify opportunities that may further assist the mining industry, which has a key role in the growth and development of our State,” he concluded.