Australian resources sector remains key economic driver as global pressures persist
A new report has found that Australia’s minerals sector has contributed $394.6 billion to federal government revenues, providing critical funding to power the nation into the future.
Commissioned by the Minerals Council of Australia (MCA), the EY Royalty and Company Tax Payments paper found that the industry’s contribution is funding essential services and major national priorities such as healthcare and education.
Economic cornerstone
MCA chief executive officer Tania Constable said the sector remains a cornerstone of the Australian economy.
“In 2023–24 alone, the industry paid $59.4b in tax and royalty payments to federal, state and territory governments including $32.5b in company tax and $26.9b in royalties, reflecting the strength and resilience of the sector and its commitment to paying its fair share.”
“While commodity markets have normalised following recent highs, tax and royalty payments remain far above historical norms.”
“The ongoing strength of the sector’s contribution – even as cost pressures mount – underscores the need for a sharp focus on lifting productivity across the economy.”
Contribution under threat
According to the EY report, maintaining the current level of contribution cannot be taken for granted with fierce global competition and rising domestic costs making it harder for Australian operations to stay ahead.
Ms Constable said that, if Australia wants to safeguard the jobs, investment and revenue generated by mining, governments must support a more productive and competitive operating environment.
“That means tackling lagging productivity, streamlining regulation and ensuring workplace laws support enterprise and innovation.”
The Centre for International Economics recently estimated that just a 1% improvement in labour productivity each year could by 2030 lead to a $290b boost to economic growth and an $11,700 increase per household in real consumption.
WA powering ahead
Elsewhere, the Chamber of Minerals and Energy of Western Australia (CME) said the 2025–26 WA Budget again confirms the importance of the state’s resources sector, providing more than a quarter of government revenue over the past seven years.
CME head of economics Aaron Walker said the resources sector underpins the high quality of life enjoyed by West Australians and that the $10.5b expected in FY25 was more than enough to fund the salaries of every police officer and public health worker in the State.
“The continued strength in royalty payments – which have totalled $77.8 billion over the past seven years – reflects a resilient iron ore price and record prices for gold, which are masking the very challenging conditions facing nickel and lithium producers,” Mr Walker said.
The CME noted that royalties have helped invest $584 million into Clean Energy Link North, the first of a number of major new transmission lines that will be critical to decarbonising WA’s power grids.