The WA government's revamped gold royalty hike, which aims to generate $332 million over four years, may already be dead with the opposition and crossbenchers saying they won't back the increase.
Under the plan, which would come into effect on January 1, the royalty rate would increase from 2.5 to 3.75 per cent when the gold price is above $A1400/ounce instead of the previously planned $1200/ounce.
Following a campaign from the industry, the opposition and crossbenchers in the upper house blocked the Labor government's initial proposal, which would have shaved $392 million off net debt over four years.
Treasurer Ben Wyatt said on Tuesday he had listened to concerns about the rejected scheme and under the revised plan there would be an assistance package for nine marginal mines.
It would enable those having all-in sustaining costs above 85 per cent of the gold price to be refunded the increased royalty rate.
Mr Wyatt said he also accepted medium-sized producers (2500 ounces - 10,000 ounces), would have been disproportionately affected by the changes, so the 2500-ounce royalty free threshold will be reinstated.
"This will be really a test for the industry because I've dealt with all the issues they've raised, plus a little bit more generosity," he told reporters.
"I think the industry now, if they simply still say no, are being driven more by a desire to keep every cent they've got rather than share some of the profits with West Australians who own that asset."
Mr Wyatt said he remained open to tweaking the policy but immediately after his announcement there was widespread criticism.
Opposition leader Mike Nahan said the treasurer had not adequately consulted the industry and the Liberals would not back the plan because it would "destroy" jobs.
Pauline Hanson's One Nation MP Robin Scott said he was determined to defeat Labor's "ill-advised attack" on jobs, while Liberal Democrats WA MP Aaron Stonehouse said he would never vote for an increase in taxes.
Australia's largest goldminer Newcrest Mining said it hadn't seen the details of the plan and was disappointed at the lack of consultation.
The Chamber of Minerals and Energy and the Association of Mining and Exploration Companies reaffirmed their strong opposition, saying it was merely a re-packaged version of the original proposal.
"Approximately 60 per cent of the revenue collected will be sent to the eastern states via GST distribution," AMEC chief Warren Pearce said.
