Thursday, 14 November 2019

In reply to  Mr GRIMLEY (Western Victoria) (29 October 2019)

Ms SYMES (Northern Victoria—Minister for Regional Development, Minister for Agriculture, Minister for Resources):

This government will always seek to balance incentives for new investment with the need to return value to the Victorian community from Crown assets.

To that end, Victoria’s existing royalty regime will be broadened when the exemption for gold is removed from January 2020.

It was not appropriate for the government to engage in targeted consultation with affected parties before the public announcement of the change to the state’s royalty regime in the 2019/20 State Budget. There was a risk that providing information to selected parties could disrupt the fair market value of publicly listed companies.

However, following the public announcement, I, the Treasurer and my department have continually consulted with industry.

Consulted parties included Castlemaine Goldfields, operators of the Ballarat Gold Mine. Public consultation on a draft of the amending regulations occurred between 23 September and 21 October 2019, as part of the Regulatory impact Statement process.

Once the exemption is removed, gold will be subject to the same general royalty rate that applies to all minerals, except brown coal. This rate will be assessed by the department in an upcoming broad review of all fees, rents and royalties.

I am pleased to see the recent resurgence of Victoria’s gold sector, with significant increases in the gold price and in relation to Ballarat Gold Mine, a significant new investment by Yaoo Capital.

The Andrews Labor Government will continue to encourage the sustainable development of minerals in the state, including through initiatives like the North Central Victorian Goldfields Ground Release tender that I announced on 29 October 2019.