Mining taxes show healthy increases
The Australian government is enjoying renewed mining profitability as the sector sees its highest contribution to essential services since the boom in 2011-12.
In an analysis by Deloitte Access Economics commissioned by the Minerals Council of Australia, it was found that Australian mining companies paid $12.1 billion in company tax in 2016-17, almost four times as much as the previous financial year.
It also found mining companies also paid $11.2 billion in royalties in 2016-17, making a total of $23.3 billion in revenue to Federal and State governments.
Minerals Council of Australia interim chief executive David Byers said the figures showed Australia’s minerals sector paid its fair share of company tax and royalties.
“This means that mining companies are estimated to have paid one in every $5 of Australia’s company tax take,” he said.
“The increase in company tax payments is driven by stronger commodity prices and hence profitability in 2016-17.
“The increase in royalties follows a significant investment in new production over recent years, which is delivering a strong dividend to the States from royalties which are based on production.”
The increase follows a previous study from Deloitte Access Economics released in January which showed mining companies paid an effective rate of 51 per cent in 201516 in company tax and royalties.
This means that mining companies are estimated to have paid one in every $5 of Australia’s company tax take. David Byers