Western Australia Resources Sector Welcomes Unchanged Mining Tax Settings in Federal Budget

The federal budget papers show the majority of transport infrastructure spending in Western Australia will be focused on the proposed Westport precinct with $552 million allocated to upgrades to Anketell Road. This amount is smaller than allocations for projects in other states, including $3.8 billion for the Suburban Rail Loop East in Victoria and $812 million for upgrades to the Bruce Highway in Queensland.

The budget also notes the impact of the ongoing conflict in Iran and rising oil prices on this year's finances. As part of the 2026 National Defence Strategy, an additional $14 billion will be spent over the next four years and $53 billion over the next 10 years through direct government investment.

This includes investment in Australia's long-term naval capability by acquiring nuclear-powered submarines and Mogami class frigates, and developing the Henderson Defence Precinct as a centre for naval shipbuilding with an initial $12 billion.

The resources industry welcomed the decision to make no changes to tax settings for resources projects. This follows speculation the federal government might introduce changes to the gas levy after organisations campaigned for a 25 per cent levy on exported gas that they said could raise up to $17 billion annually.

Budget documents showed the government opted not to proceed with such a change. "To return to surplus we need to build a bigger economy, not bigger taxes," the group said. It added that turbocharging investment into the resources sector offered the best chance to return the budget to surplus and that the government should be recognised for prioritising Australia's reputation as a stable and reliable trading partner.

The group stressed the critical role of exports like iron ore, LNG and gold amid the unfolding Middle East conflict. It said national security increasingly relies on being a stable and trusted commodity exporter. It noted the government had also supported mining through the Australian Fuel Security and Resilience package to improve fuel security for minerals extraction and processing.

The defence spending measures are intended to strengthen naval capabilities over the coming decade. The Henderson Defence Precinct is positioned as a world-class centre of excellence for naval shipbuilding.