The mining sector drives the Australian economy with $74 billion in taxes and royalties paid in FY23

A new report shows Australian mining companies paid $74 billion in taxes and royalties in the 2022-2023 financial year.

Ernst & Young’s latest royalty and corporation tax report, commissioned by the Minerals Council of Australia (MCA), shows the sector contributed $42.5 billion in corporation tax, a decade high of $31.50. billion in royalties for 2022-2023.

The $74 billion paid to federal, state and territory governments represents an increase of $9.3 billion on the previous year.

Over the past decade, the industry has paid out a total of $356.6 billion in corporate income taxes and royalties.

Economic basis

MCA says the mining industry has once again demonstrated that it is the backbone of the national economy.

“The Australian minerals industry continues to power the Australian economy, creating economic opportunities and enabling government investment in key services such as health, education, childcare, aged care and defence,” said MCA chief executive Tania Constable, announcing the record high numbers.

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

The highest average salary

“Australia’s mining industry continues to deliver the highest average wages, (…) provides the highest export earnings and plays a key role in supporting regions and communities, supporting 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 increase mining revenues, it cannot take the sector’s strong contribution for granted.”

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

“At a time when Australia struggles with falling productivity and looming long-term structural budget deficits, the government is imposing regressive sector policies that stifle investment growth critical to achieving our economic potential.”

“Draconian” IR policy

According to the MCA, Australian miners are making a huge contribution to tackling the “draconian” industrial relations (IR) agenda of the 1970s and the high costs of energy, environment, planning and taxation.

“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 for our policy environment to reflect this reality.”