Oct 22 (Reuters) – In order to better compete for global investments, Australia must pay close attention to tax incentives and business-friendly measures offered in countries such as Canada, BHP Chair Ross McEwan said on Thursday.
Speaking at the miner’s annual general meeting, McEwan said, “Make no mistake, Australia must compete for capital if it wants to win – nationally, and in every state.”
He said Canada had recently announced a “Productivity Mega Deduction”, allowing businesses to immediately deduct the full cost of eligible capital investments.
Canada also allows miners to fully deduct mine development costs in the year they are incurred, he added.
Such measures lower the tax burden on new investments, improve returns and give companies more confidence to commit capital, McEwan said, describing Canada’s approach as a practical example of how government policy could help boost productivity and attract investments. That in turn creates jobs, incomes and tax revenue, he added.
He said similar examples could be found in other countries where BHP invests, including Argentina and Chile.
“Australia should pay close attention to that.”
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Diti Pujara)
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