Australia’s minerals industry paid record taxes and royalties to federal, state and territory governments in 2019-20 even as the COVID-19 pandemic started to push the economy into recession.
The record payments are highlighted in the latest Deloitte Access Economics report commissioned by the MCA which estimates company tax payments and royalties from the minerals sector at $39.3 billion in 2019-20; $24.1 billion in company tax – around half the annual Defence budget – and $15.2 billion in state and territory royalties, both record amounts.
Between 2010-11 and 2019-20, the minerals sector contributed $238.8 billion in taxes and royalties to federal, state and territory governments – $132.8 billion in tax and $106 billion in royalties.
The total amount of company tax paid by the minerals sector has grown from $14.5 billion in 2017-18 to $22.3 billion in 2018-19 and $24.1 billion in 2019-20.
Australia’s minerals sector contributes 30 per cent of all federal company tax payments, with strong production and commodity prices – particularly for iron ore amid strong Chinese demand and continued weakness in supply from our global competitors – boosting earnings from Australia’s mineral exports and increasing company tax payments.
Mining profits are expected to further improve throughout 2020-21 in line with higher prices and export volumes for Australian resources, outweighing a decline in the value of coal exports.
Company tax payments from the minerals industry help fund better services for the community including mental health, aged care and women’s programs.
Australian minerals industry always pays its fair share of tax while providing royalties to state governments to pay for improved roads, hospitals and other infrastructure and services.
Mining companies also support thousands of regional businesses around Australia and their workers who provide essential services that keep the industry operating.
In addition to new jobs across the nation and paying its fair share of taxes and royalties, the mining industry has been supporting local communities through the COVID-19 pandemic, providing substantial donations to hospitals, charities, child care centres and schools.