Record $63b contribution by Australian minerals

The contribution made by the Australian minerals industry to the Federal, state and territory governments from company tax and royalty payments in FY22 jumped 50% from the previous financial year before, reaching a record $63b.

This is an increase of $21b from the previous year’s $43b, with the total contribution in FY22 equivalent to paying for the entire Medicare scheme or the Childcare subsidy for two years, according to the Minerals Council of Australia (MCA).

MCA chief executive Tania Constable says Australia does well when Australian minerals do well.

“Minerals have helped propel our economy forward, boosted economic opportunity and freedom, and enabled the governments to invest in the things that really matter: families, communities and vital services like hospitals, schools, childcare, aged care and infrastructure,” she said.

The latest Ernst & Young Royalty and Company Tax payments report, commissioned by the MCA and released today, shows that in FY22 the sector contributed $39b in company tax (a third of all company tax paid in Australia) and $24b in royalties.

“The minerals industry is clearly paying its fair share of tax,” Ms Constable says.

“Over the 10 years to FY22, Australian minerals have contributed 21% of Australia’s GDP growth, $295b in company tax ($168b) and in royalties ($127b) underpinning Australian government revenue year in, year out.

“The record tax and royalty payments come off the back of $389b of capital investments the industry made since the start of the mining boom.”

Ms Constable calls on governments to address workplace relations, tax, environment, climate change and energy policies within Australia to continue to attract capital investment in the nation’s resources sector.

The latest Ernst & Young Royalty and Company Tax payments report can be accessed here.