- Media Release
Mining is making a substantial contribution to public services
A strong mining industry is crucial for Australia’s economic future, the creation of more jobs and opportuniies, and the record funding of essential government services.
When mining is strong, Australia is strong. That has been the experience of our national economy for decades, with our mining community contributing significantly to Australia’s economic success story.
As Australia heads into the new year facing economic headwinds as the post-COVID recovery begins to recede, the strength of our mining sector will be an important ballast.
Attempts to add an extra tax on the mining sector, or add further restrictive regulation, would impede the sector’s critical role in Australia’s economic recovery.
A report released today by The Australia Institute not only ignores that reality, but fails to understand the cyclical nature of coal mining company profits.
In five out of the last seven years, coal companies in Australia made annual losses, as low commodity prices combined with increased costs of production to impact the sector.
The profitability of coal mining companies must be viewed over the long term.
In the last decade, mining companies have contributed $142.6 billion in company tax and $112 billion of royalties – payments that help fund vital government services including mental health, aged care and childcare. They also pay for schools, hospitals and critical infrastructure.
According to the Australian Taxation Office, the Australian mining industry remains the largest contributor to the Australian economy.
In the 2020-21 financial year alone, the 2468 largest entities in Australia paid $68.6 billion in company tax. More than 40 per cent of that figure was paid by mining companies.
Mining has underpinned the nation’s prosperity and will continue to into the future.