Photo by: Bloomberg
PERTH (miningweekly.com) – A new report by advisory firm Deloitte Access Economics has shown that Australian mining companies paid some A$30.6-billion in company tax and royalties in 2017/18.
The report, commissioned by the Minerals Council of Australia (MCA), noted that Australian miners paid A$18.6-billion in company tax during this period, which was up from the A$15.4-billion during the height of the resources boom in 2011/12.
Mining companies paid a further A$12-billion in royalties to state governments during 2017/18, which is more than three times that paid during 2007/8.
“In total, mining companies paid A$224.8-billion in company tax and royalties in the 11 years between 2007/8 and 2017/18,” said MCA CEO Tania Constable.
“These figures show the benefits delivered to taxpayers by the nation's largest export earner through billions of dollars paid to governments each year in taxes and royalties.
“Yet, there could be even more benefits delivered to the community if our politicians deliver reforms, in particular, an internationally-competitive tax rate, so Australia can secure investment in the mines of the future.”
The MCA earlier this week called on the government to consider tax reforms in order to maintain Australia’s competitiveness for foreign investment, after an internal report found that Australia had declined from having the equal fifth-highest headline company income tax rate across the Organisation for Economic Development (OECD) countries, to having the second highest, only behind Portugal.
Australia’s 30% headline company tax rate is also higher than the weighted average of the Group of Seven, the Group of Twenty and OECD countries.
“Federal and state governments need to ensure consistent policies that encourage investment and productivity in the resources sector, ensuring mining continues to deliver highly-paid, highly-skilled jobs in regional and remote Australia,” Constable said on Tuesday.