Australia’s minerals sector has paid $432 billion in company taxes and royalties over the past decade, and payments are still well above historical levels even after coming off record highs.
“This helps to pay for education, health, police, transport and other vital services and infrastructure for all Australians,” Minerals Council of Australia (MCA) chief executive officer Tania Constable said.
A new report by consulting firm EY-Parthenon for the MCA puts combined royalty and net company tax payments at $63.8 billion for the 2023-24 financial year (FY24), including $36.9 billion in company tax and $26.9 billion in royalties. That is down from $73.8 billion in FY23, when high commodity prices pushed revenue to record levels.
Mining is still Australia’s largest taxpayer by industry and accounted for more than a quarter of all company tax paid in FY24. The sector also made up more than a third of all tax payable by large and international businesses, at 38.5 per cent.
EY-Parthenon estimates the combined figure will ease to $48.9 billion in FY25, but payments are expected to sit more than five times higher than FY16 levels.
“Despite this moderation, estimated FY25 company tax payments are expected to remain substantially above historical averages, with net company tax payments in FY25 likely to remain more than five times higher than FY16 levels.”
Strong prices for gold and other commodities have helped keep revenue above pre-FY21 levels even as coal prices have come off their peaks. State and territory royalty collections also remain well above FY21 levels.