Mining contributes $43 billion in company tax
Thursday, July 7th, 2022
The return to the community from Australia’s mining industry has again hit record levels, with a combined $43.2 billion in company tax and royalties paid in financial year 2020-21, a 16 per cent increase from the $37.3 billion contributed in the previous period.
Company taxes paid reached a new record high of $26.5 billion and royalties also reached a high of $16.7 billion in 2020-21 contributing significantly to federal, state and territory governments at a time when they needed it most during the COVID-19 pandemic.
The record company and royalties payments are highlighted in an Ernst & Young report commissioned by the Minerals Council of Australia, which also shows that in the last decade (between 2011-12 and 2020-21), the mining industry contributed $254 billion in company taxes and royalties ($142 billion and $112 billion respectively).
MCA chief executive Tania Constable said company tax and royalties payments are expected to continue increasing in 2021-22 in line with increases in export earnings, driven by a positive outlook in the price and quantity produced of metallurgical and thermal coal coupled with a robust year for iron ore, gold and base metals.
“The industry in Australia continues to pay the highest average wages, the most company taxes, delivers the most export revenue and is critical to supporting regions and communities – supporting 1.1 million jobs in the mining industry and its supply chains,” she said.
“The Australian mining industry always pays its fair share of tax while providing royalties to state governments to pay for improved roads, hospitals and other infrastructure and services.
“Mining companies also support thousands of regional businesses around Australia and their workers who provide essential services that keep the industry operating.
“In addition to new jobs across the nation and paying its fair share of taxes and royalties, the mining industry has been supporting local communities through the COVID-19 pandemic, providing substantial donations to hospitals, charities, child care centres and schools.”