- Media Release
Mining continues to deliver for the nation
The Australian minerals industry contributed more tax than all other sectors combined in 2021-22, underpinning the nation’s economic and fiscal rebound from COVID-19.
New data released by the Australian Tax Office highlights the significant role the minerals sector continues to play in not only delivering ongoing prosperity for all Australians, but enabling governments to invest record funding in health and education, infrastructure, childcare and defense.
According to the ninth annual Corporate Tax Transparency report, tax payable by mining and energy companies amounted to $42.4 billion in 2021-22, a staggering 50.6 per cent of all corporate tax collected in Australia during the period. The ATO report covers Australia’s 2713 largest entities. Mining companies were the largest contributors, with BHP and Rio Tinto again being Australia’s two largest taxpayers. Indeed, six mining companies were in Australia’s top ten taxpayers.
In fact the mining sector, as highlighted by the ATO, “paid more tax in 2021-22 than the total tax from all sectors in each of the first three years of the Corporate Tax Transparency reporting”.
This is not an overnight success story, or merely a product of high commodity prices, stemming from global forces.
This is the result of a concerted and methodical commitment from the mining sector over the past two decades to build lasting prosperity for all Australians.
To showcase this growing trend, in 2017-18, the mining industry contributed 30.7 per cent of all corporate tax in Australia. That contribution is now more than two and half times larger.
And while other sectors are starting to contribute more tax, having emerged from development and construction phases, the minerals sector’s contributions have been unwavering and enduring.
However, the industry’s record contribution should not be taken for granted. Mining is under attack on a myriad of flanks, with restrictive and regressive government policies combining to make investing in Australia a considerable risk.
These tax, industrial relations and environment policies are contributing to the elevated costs of running a business in Australia, forcing companies and investors to consider options abroad or accept moderated growth strategies.
These pressures have been clearly and publicly articulated by our members. They are not threats, but grim reality.
The Albanese Government’s so-called Closing Loopholes legislation will only compound those concerns, putting monumental cost pressures on miners, service contractors and small businesses across the economy, completely undermining the crucial tax contribution the sector is making.
In uncertain economic times, the mining sector has proved itself a constant source of prosperity, helping communities and governments to deliver a better future for all.