Frequently Asked Questions - Tax and contributions

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About the Minerals Council of Australia

The MCA is the leading advocate for Australia's world class minerals industry, promoting and enhancing sustainability, profitability and competitiveness. The MCA represents a world-leading minerals sector that is dynamic, diverse, sustainable and valued by all Australians. Read more.

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How much profit from mining stays in Australia?

The minerals industry reinvests large sums in Australian mine development projects and related infrastructure.

In addition, about half of profits generated over the last decade have been paid to Federal and State governments in the form of income taxes, payroll tax and royalties.

Dividends from publicly-listed companies are paid to shareholders including Australian superannuation funds and Australian individuals.

Isn’t it correct that mining values profits over people?

No. The number one priority of our industry is the health and safety of our people and contributing strongly back to communities.

What are the future prospects for the Australian minerals industry?

With global population growth and rapidly escalating demand for energy and infrastructure the world is using more minerals and metals than ever. 

With a production boom now underway to meet this demand, the appetite for our world-class Australian resources is expected to remain strong.

Do mining companies pay Australian income tax?

Yes. In the 2017-18 financial year, the total income tax and royalty payments to federal and state governments was estimated at $31 billion by Deloitte Access Economics (DAE).

In the 10 years to 2017-18, DAE estimated that mining companies paid $123 billion of company income tax.

Do mining companies pay any other tax to governments in the States and Territories in which they mine?

Yes. Mining companies pay royalties, payroll tax and land tax to State and Territory governments.

In 2017-18, DAE estimated that Australian mining companies paid $12 billion in royalties. In the 10 years to 2017-18, Australian mining companies paid $89 billion in royalties.

Do mining companies receive government subsidies?

No. Mining companies do not receive government subsidies.

Successive industry assistance reviews by the independent Productivity Commission have confirmed that Australian mining receives ‘negligible’ government assistance.

What are fuel tax credits?

Diesel fuel is taxed for the purpose of funding roads across Australia.

But many businesses use diesel in machines that do not use Australia’s road network.

These users, which include mining companies, farmers, fishers and tourism operators receive a rebate from the government for the tax known as fuel tax credits.

Fuel tax credits are claimed by these industries to remove the tax on a vital business input. They are not a subsidy.