Politics and Aviation

Mining Super Profits Tax

I have recently completed a consultancy assignment in Queensland which required me to visit 29 air operators, most of whom were located in regional areas of the State. This was an interesting job and very insightful.

One of the things I learnt was that a number were potentially impacted by the mining super profits tax, before it was subsequently amended by Prime Minister Gillard. I have no knowledge of the situation post the Gillard amendment.

I have always resisted publishing political comment on this website, and point out that I make no judgement either way about the tax or the politics, and I have resisted making any comment until after the federal election. I generally keep my politics to myself, however; I am reporting what was said to me by air operators.

A number who claimed to undertake work for mining or exploration companies said that their work had either dried up or been significantly reduced as a result of the uncertainty and conjecture about the super profits tax. Whether this was a ruse, or a case of the jitters or real cutbacks by the mining companies could not be determined, but the cutbacks in aviation activity were real. I was surprised as to the extent of the impacts this had on small regional air operators.

I hope that their outlook has improved as a result of the Prime Minister’s intervention and the amended tax. It illustrated to me how any State or Federal policy, made by any Government could have significant effects on the aviation industry.

Robert Collins | Tuesday, August 24, 2010 | Comments (0) | Trackbacks (0) | Permalink