Quarry fees proposed from 1 January 2027 draw warning
Proposed Victorian quarry fees from 1 January 2027 could raise the cost of construction materials used in housing, infrastructure and renewable energy projects.
A Special Government Gazette published on 14 August confirms the Minister for Energy and Resources decided to recommend new minerals and extractive-industry fee regulations.
Cement Concrete & Aggregates Australia criticised the Government for not publishing the final fee schedule or explaining how industry submissions were handled after consultation.
CCAA chief executive Michael Kilgariff argued businesses should get the final charges, the calculation method and enough time to assess the impact. “This is a material increase in the cost of operating quarries and supplying the construction materials Victoria depends on, yet affected businesses have not been told what the final charges will be,” he said.
Michael Kilgariff calls for delay
The proposed fee uplift is 234%, while Melbourne CPI has risen by about 32% since the previous fee review.
According to the Regulatory Impact Statement, the allocation of regulatory costs relies on estimates of regulatory effort from 2013 and 2014, not current activity-based costing.
Meanwhile, CCAA wants any fee increase delayed until 1 July 2027, when a new duty-based regulatory framework is due to start.
That framework is set to remove the existing work-plan requirement and trigger a broader review of fees.
Kilgariff contended that starting a new fee regime on 1 January 2027, only six months before the wider system changes, is poor sequencing.
The industry body is also urging the Government to publish the final fee schedule immediately, benchmark fees against other states, phase in any justified increases and link future fees to enforceable service standards.
CCAA warned that rising energy, labour, transport, insurance, WorkCover, tax and regulatory costs are already affecting decisions on new plant, equipment and production capacity in Victoria.
Kilgariff said companies were weighing other jurisdictions with lower costs, faster approvals and more predictable regulatory settings because capital can move.
Heavy construction materials account for an average of about 29% of project costs, according to CCAA.
An average new home uses about 110 tonnes of aggregate and more than 50 cubic metres of concrete.
A wind turbine can require up to 1,000 cubic metres of concrete, adding to the concern about higher quarry operating costs.
