Record tax by minerals sector delivers economic boost to Australia

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The Minerals Council of Australia (MCA) has reported that the Australian minerals sector contributed significantly more tax than all other sectors in 2021-22, bolstering the nation’s economic and fiscal recovery post-COVID-19.

The Australian Tax Office (ATO) has released new data highlighting the vital role of the minerals sector in ensuring prosperity for all Australians and enabling government investment in health, education, infrastructure, childcare, and defence.

The ninth annual Corporate Tax Transparency report revealed that mining and energy companies paid a total of $42.4 billion in 2021-22, accounting for 50.6% of all corporate tax collected in Australia. BHP and Rio Tinto were the largest taxpayers, with six mining companies in Australia’s top ten.

The ATO revealed that the mining sector paid more tax in 2021-22 than all sectors in the first three years of Corporate Tax Transparency reporting.

Adertisement

According to the MCA, the report results from the mining sector’s systematic commitment over the past two decades to ensure long-term prosperity for all Australians.

However, the Council warns that the industry faces significant risks due to “restrictive and regressive government policies”.

The MCA said Australia’s tax, industrial relations, and environment policies are increasing business costs, prompting companies and investors to explore overseas options or adopt moderated growth strategies.

The Council added that the Australian Government’s Closing Loopholes legislation will exacerbate existing issues by imposing significant costs on miners, contractors, and small businesses, thereby undermining the sector’s crucial tax contribution.