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Mining sector fuels Australian economy with $74b taxes and royalties paid in FY23

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By Colin Hay - 
Australia mining companies $74 billion taxes royalties

A new report has found that Australia’s mining companies paid $74 billion in taxes and royalties in the 2022-23 financial year.

The latest Ernst & Young royalty and company tax payments report, commissioned by the Minerals Council of Australia (MCA), found that the sector contributed $42.5b in company tax and a decade-high $31.5b in royalties for 2022-23.

The $74b paid to federal, state and territory governments is an increase of $9.3b from the previous year.

Over the past decade, the sector has paid out a cumulative $356.6b in company tax and royalties.

Economic backbone

The MCA says the mining industry has again demonstrated its role as the backbone of the national economy.

“The Australian minerals industry continues to propel the Australian economy, fostering economic opportunities and enabling government investments in vital services such as health, education, childcare, aged care and defence,” MCA chief executive officer Tania Constable said in announcing the record numbers.

“These record tax and royalty payments reflect the minerals industry’s commitment to paying its fair share.”

Highest average wage

“The mining industry in Australia continues to pay the highest average wages, […] deliver the most export revenue and play a critical role in supporting regions and communities—sustaining 1.1 million jobs in the mining industry and through its supply chains,” Ms Constable said.

“If the government wants to protect these jobs and enhance revenue from mining, it cannot take the sector’s strong contributions for granted.”

“Stable and supportive policies are essential to attract the necessary investment.”

“At a time when Australia grapples with decaying productivity and looming long-term structural fiscal deficits, the government is imposing regressive policies on the sector that dampen the investment growth critical to achieving our economic potential.”

‘Draconian’ IR policy

According to the MCA, Australia’s miners are making a massive contribution while dealing with a “draconian” 1970s industrial relations (IR) agenda and high energy, environmental, planning and taxation costs.

“The federal government must remember that business and industry, both large and small, are the real wealth creators in Australia,” Ms Constable said.

“Every Australian has a stake in the success of our mining industry and it is time that our policy environment reflects that reality.”