
Tania Constable, Chief Executive Officer of the Minerals Council of Australia, has issued a statement highlighting the significant contributions of the mining industry to Australia’s economy, as detailed in the latest Australian Taxation Office (ATO) Corporate Tax Transparency Report.
The report reveals that the mining sector remains the largest taxpayer in Australia, contributing $43.1 billion in company tax for the 2022-23 financial year.
Constable emphasised that this substantial tax contribution underscores the vital role mining plays in sustaining the economy and funding essential services for Australians.
The total tax and royalty payments from the mining sector reached $74.6 billion, which includes $31.5 billion in royalties alone.
This marks the second consecutive year that mining has outpaced all other industries combined in tax contributions, accounting for approximately 44 per cent of the total tax paid by large corporate entities in Australia.
The report highlights that major players in the mining industry, including Rio Tinto, BHP, and Glencore, dominate the list of Australia’s top taxpayers, with mining companies comprising more than half of the top 20 largest taxpayers.
This robust financial performance not only supports critical government initiatives such as the National Disability Insurance Scheme (NDIS), education, infrastructure, and national security programs like AUKUS but also reinforces job security across Australia, with the sector supporting 1.1 million jobs.
Since 2014-15, tax payments from the mining industry have increased fivefold, reflecting strong export demand for Australian resources.
Constable remarked that this growth serves as a clear reminder of the need to support new mining projects rather than hinder them with excessive regulations and lengthy approval processes.
“A strong mining industry translates to a strong and secure future for all Australians,” she stated.
The ATO report indicates that corporate tax compliance is at an all-time high, with large corporates paying 96 per cent of their owed income tax following compliance activities by the ATO.
This level of transparency and accountability is crucial for maintaining public confidence in corporate tax contributions.