The Federal Government has announced a budget dependant on the mining and resources industries and especially its involvement in the “Asian century.”

 

Treasurer Wayne Swan’s primary focus with the budget was “jobs, jobs, jobs,” including in the mining industry.

 

Total skilled migration will increase to 16,000 positions and increase the number of people available to work on WA and Queensland resource projects.

 

Investment in the mining sector will reach $76 billion in the 2011-2012 financial year, making up 6 per cent of the total economy, largely led by liquefied natural gas projects off Western Australia's coast.

 

This figure shows eight times more being spent in the industry than the previous financial year.  A further $360 billion in resources investment is being planned.

 

But the government says the enormity of the investment will have a negative side, as miners make more money and are able to claim back costs, depreciating investments.

 

'Differences between the earlier mining boom and the mining boom in prospect suggest that there is unlikely to be an accompanying surge in company tax receipts for some years,” according to the budget papers.

 

''Higher levels of depreciation expenses mean that the levels of taxable income, and thus company tax receipts, are lower than would have been the case otherwise.''

 

The Government has allocated $34.4 million on a package called Buy Australian at Home and Abroad, to link Australian suppliers and manufacturers to take advantage of the mining boom.

 

"To make sure local enterprises can seize the opportunities presented by the boom, tonight I announce a $34 million package to help Australian manufacturers better supply resource sector projects," Mr Swan told Parliament.

 

The initiative will see new "supplier advocates" created to identify opportunities and leverage off the nationwide Enterprise Connect network to give small and medium-sized manufacturers "the skills and knowledge needed to integrate into global supply chains".

 

The Government has further announced the establishment of a Resources Sector Supplier Advisory Forum and Resources Sector Supplier Envoy to "champion Australian industry and participation in the sector".