Australian Minerals Sector Achieves Record Tax and Royalty Payments

The Australian minerals industry continues to propel the Australian economy forward, fostering economic opportunities and enabling government investments in vital services such as health, education, childcare, aged care, and defence.

The industry has once again demonstrated its role as the backbone of the national economy, delivering record company tax and royalty payments in the 2022-23 financial year.

The sector contributed a total of $74.0 billion to federal, state, and territory governments, an increase of $9.3 billion from the previous year.

The latest Ernst & Young Royalty and Company Tax Payments report, commissioned by the Minerals Council of Australia reveals that in 2022-23, the sector contributed $42.5 billion in company tax and a decade-high $31.5 billion in royalties.

These record tax and royalty payments reflect the minerals industry’s commitment to paying its fair share.

Over the past decade, the sector has significantly bolstered Australia’s economic growth, with a cumulative $356.6 billion in company tax ($206.2 billion) and royalties ($150.4 billion).

The mining industry in Australia continues to pay the highest average wages, contribute the most company taxes, deliver the most export revenue, and play a critical role in supporting regions and communities—sustaining 1.1 million jobs in the mining industry and through its supply chains.

If the government wants to protect these jobs and enhance revenue from mining, it cannot take the sector’s strong contributions for granted. Stable and supportive policies are essential to attract the necessary investment.

At a time when Australia grapples with decaying productivity and looming long-term structural fiscal deficits, the Government is imposing regressive policies on the sector that dampen the investment growth critical to achieving our economic potential.

This includes a draconian 1970s industrial relations agenda, high energy, environmental, planning and taxation costs.

The federal Government must remember that business and industry, both large and small, are the real wealth creators in Australia.

Every Australian has a stake in the success of our mining industry, and it is time that our policy environment reflects that reality.

ENDS