Key facts
- Australia needs competitive tax incentives and business-friendly policies to attract global investment.
- Canada's "Productivity Mega Deduction" allows immediate full deduction of eligible capital investments.
- Canada permits full deduction of mine development costs in the year incurred.
BHP Chair Ross McEwan stated that Australia needs to observe tax incentives and business-friendly measures from countries like Canada to effectively attract global investment. Speaking at the company's annual general meeting on Thursday, McEwan emphasized the need for Australia to actively compete for capital.
He pointed to Canada's "Productivity Mega Deduction," which allows businesses to immediately deduct the full cost of eligible capital investments, as a successful example. McEwan also noted that Canada permits miners to fully deduct mine development costs in the year they are incurred. These measures, he explained, reduce the tax burden on new investments, enhance returns, and foster greater company confidence in committing capital.
McEwan suggested that similar successful policies can be observed in other countries where BHP operates, such as Argentina and Chile, and urged Australia to pay close attention to these examples.