Slap in face for small business from gold hit
More than 2,500 businesses in the Perth metropolitan area are preparing for a hit to their financial viability because of the WA Labor Government’s ham-fisted decision to increase the gold royalty rate by 50 per cent.
Hardest hit by this ill-advised cash grab on the gold sector will be the business precincts in Perth, Belmont, Victoria Park and West Swan, home to more than 1,000 small to medium sized businesses that are supported by the WA gold sector.
Many of these businesses are privately and family owned and rely on a strong gold sector for their own – and their employees’ – financial wellbeing.
Here is an llustration of the spread of the business locations making clear the pain that will be felt across hundreds of business in suburban Perth.
Chamber of Minerals and Energy CEO Reg Howard-Smith said the direct impact of the royalty cash grab was devastating enough for the gold miners.
“What the WA Labor Government has also failed to understand is the significant multiplier effect of the gold sector.
“The gold sector in WA directly supports 3,549 businesses, including more than 2,500 in the Perth area.
“Many of these businesses will suffer the very real fall-out from the mine closures and axing of exploration programs that will stem from the gold royalties cash grab.”
In addition, the locations which home the most workers who support or supply the gold industry has also been released:
Map data based on confidential and commercially sensitive information supplied by gold miners to the CME