May 12, 2020

Miners pay record taxes

Miners pay record taxes Miners shovelled in $8 billion more in taxes and royalties last financial year.

Company taxes and royalties paid by Australia’s world-leading minerals sector increased by $8 billion in 2018-19 to a record $39.3 billion.

It reflect continued higher production and strong commodity prices, according to a new Deloitte Access Economics report commissioned by the Minerals Council of Australia (MCA).

The report confirms that the minerals sector contributed close to 30 per cent of all company tax in 2018-19.

When combined with royalties, these contributions supported stronger communities by helping fund essential services and infrastructure, said MCA CEO Tania Constable.

The report found that over the last 11 financial years, the minerals industry paid $230 billion in royalties and company tax – enough to build 8850 schools or 320 hospitals, said Ms Constable.

“High and consistent payments across the commodity cycle show that the minerals sector is a reliable and significant tax and royalty contributor,” she said.

The report follows the recent release of the Productivity Commission’s Trade and Assistance Review 2018-19.

The review stated that tariff and budgetary assistance to mining is ‘disproportionately small’, with the effective rate of assistance for mining – the ratio of total assistance to output – just 0.2 per cent in 2018-19, the same low rate as the last three years.

These tax and royalty payments demonstrated how the minerals sector has underpinned Australia’s economic prosperity for decades, Ms Constable said.

“The Treasurer has recently reinforced the importance of supporting a business-led recovery through competitive tax settings, workplace relations reform, deregulation and new infrastructure,” she said.

“Lower taxes, faster project approvals, modern skills and flexible workplaces will help the minerals sector make an even bigger contribution to both the national economy and regional jobs as Australia emerges from COVID-19.”