The Minerals Council of Australia (MCA) engaged with Ernst & Young to write a report which estimated royalty and company tax payments attributable to the minerals sector.
The royalty and company tax payments report found that in 2021-22, the country’s minerals sector contributed $63 billion to federal, state and territory governments, a notable increase of $21 billion from the previous year.
Out of the total, $39 billion was company tax, a third of all company tax paid in Australia, and $24 billion was the sector’s contribution to royalties.
“Minerals have helped propel our economy forward, boosted economic opportunity and freedom, and enabled the governments to invest in the things that really matter (such as) families, communities and vital services like hospitals, schools, childcare, aged care and infrastructure,” MCA chief executive officer Tania Constable said.
“Australia does well when Australian minerals do well.”
Over the past ten years, Australian minerals have contributed 21 per cent of Australia’s gross domestic product growth, through $168 billion paid in company tax and $127 billion paid in royalties- adding to a total of $295 billion that underpinned Australian government revenue.
The record tax and royalty payments paid come off the back of $389 billion of capital investments the industry made since the start of the mining boom.
“Australia’s vulnerability to competition for this investment from resources-rich economies will only grow as they seek to seize the opportunity to supply the minerals and metals needed to achieve global net zero emissions,” Constable said.
“Investment should be placed at the centre of government’s policymaking to attract a significant proportion of this investment that will create tens of thousands of new regional jobs and business growth.”