Australia’s mining sector contributed $42.5 billion (US$28.3 billion) in company tax and a decade-high $31.5 billion in royalties for the 2022-23 fiscal year, according to Ernst and Young’s report, commissioned by the Minerals Council of Australia.
The mining lobby group said that the report shows the impact of the mining sector in propelling the Australian economy forward.
The Minerals Council of Australia also said that the mining industry contributed $74 billion to federal, state, and territory governments during the 2022-23 fiscal year, an increase of $9.3 billion from the previous year.
“The mining industry in Australia continues to pay the highest average wages, contribute the most company taxes, 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,” said Tania Constable, CEO of the Minerals Council of Australia.
Ms. Constable added that the government needs to enact stable and supportive policies to attract more necessary investment to strengthen the mining sector.
The lobby group also said that the mining industry continues to pay the highest average wages, contribute the most company taxes, 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.
Last October, the Albanese government announced that it would pump $2 billion into mining and processing of critical minerals to reduce the country’s reliance on China’s control and influence on the said sector.
The government also announced multiple investments to further strengthen the sector in line with the Future Made In Australia commitment.
However, the Mineral Council of Australia said that the government has imposed multiple regressive policies such as including 1970 industrial policies, high energy, environmental, planning, and taxation costs.
“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,” Ms. Constable noted.
“The federal government must remember that business and industry, both large and small, are the real wealth creators in Australia.”
In a position paper submitted to the previous Morrison government, the Mineral Council of Australia emphasised the importance of attracting more foreign investors while considering the country’s national security.
The organisation recommended clarifying the concept of National Security Business to make it clear that miners will not be captured because of processing-related concerns and reduce the period of time available for the use of the call-in power from ten to three years.
It also recommended the provision of mechanisms to independently review fees and a statutory review within two years after the first implementation of the policy reforms in 2020.
“Every Australian has a stake in the success of our mining industry, and it is time that our policy environment reflects that reality,” Ms. Contable said.
Based on Australasian Institute of Mining and Metallurgy (AIMM) data, Australia’s mining sector contributes 75 percent of the country’s exports, employing more than 1.2 million mining professionals and exporting $160 billion net worth of resources.
