Miners pay more tax than all other sectors combined

The Australian Taxation Office (ATO) has today released its Corporate Tax Transparency report for 2023-2024, highlighting the Australian mining industry has paid more tax than any other industry.

The report confirms Australia’s mining industry remains the nation’s biggest taxpayer, for the third consecutive year, paying $65b in company tax and royalties for 2023-24, despite weaker commodity prices and challenging geopolitical conditions.

ATO assistant commissioner Michelle Sams highlights the industry’s resilience.

“Despite a decrease in tax payable reflecting weaker commodity prices which impacted profitability of major producers in the sector, 2023-24 is the third year in a row that the mining sector paid more tax than all other sectors combined,” she said.

The report confirms the industry’s crucial role in funding essential services such as health and education, boosting Australia’s economic growth, supporting communities and bolstering the Federal Government’s budget.

Minerals Council of Australia (MCA) chief executive Tania Constable says the report confirmed mining companies make up more than half of Australia’s top 20 largest individual taxpayers, with Rio Tinto (ASX: RIO) and BHP (ASX: BHP) leading the way.

“This contribution highlights the central role mining plays in Australia’s ongoing prosperity and why supporting the sector to grow and invest is essential to sustaining jobs, driving regional development and funding the hospitals, schools, infrastructure and services like the NDIS and Pharmaceutical Benefits Scheme that Australians rely on,” she said.

A report commissioned by the MCA and published by Ernst & Young in June this year, the Royalty and Company Tax Repayments report, confirmed the Australian mining sector paid $38.1b in company tax while contributing $26.9b to state budgets through royalties in FY24.

“This growth in tax contributions, against the backdrop of lower commodity prices and sustained geopolitical pressures, reflects strong export demand for Australian resources,” Ms Constable said.

“[It] is a further reminder of the importance of backing Australian mining and pursuing policies that attract new investment, lower the cost of doing business and provide the certainty that unlocks new projects.”