A recent corporate tax transparency report from the Australian Taxation Office (ATO) has revealed that the resources sector accounts for more than half of large corporation tax, with major mining and energy firms contributing $48 billion in the 2023-24 period.
Of a greater $95.7 billion paid by the end of FY24, the resources sector has hit its third consecutive year of covering more than half of the total collected from large corporations.
Members from resources advocate the Chamber of Minerals and Energy Western Australia (CME) revealed to account for $37.3 billion in corporate tax and petroleum resource rent tax.
This positions CME members to represent 38.4% of tax collected in the last financial year.
Largest returns from members include BHP (ASX:BHP) with $8.1 billion, Rio Tinto (ASX:RIO) with $6.8 billion, and Fortescue (ASX:FMG) with $3.9 billion, which were all ranked in the top 20 of corporate taxpayers over the period.
CME Director Policy and Advocacy Anita Logiudice explains that the billions paid by members alone is enough to fund total Medicare payments.
“The resources sector is the foundation of Australia’s prosperity – and that foundation is firmly anchored in WA,” Logiudice says.
“Separate CME analysis found the WA resources sector supported 10% of national GDP in 2023-24 and more than 840,000 direct and indirect jobs.
“Many of those jobs are among the highest paying in the nation and all of them contribute personal income tax to the Commonwealth Government, money that is also used to help fund vital services like Medicare, the NDIS and aged pensions.”
In comparison to the previous year – with miners also achieving more than half of corporate tax paid – large corporations have dropped the total tax collected from $97.9 billion in FY23 to $95.7 billion in FY24.
CME reports that this fall is driven by weaker commodity prices over the last year, directly impacting the profitability of resources companies.
Logiudice states that Australia’s GST system must work to incentivise states and territories to grow their economies and develop the resources at their disposal.
“A fair share of GST is critical for the Western Australian Government to continue investing to help unlock the new opportunities presented by the global energy transition, including critical minerals processing, green iron and hydrogen production,” Logiudice adds.
“A successful resources sector benefits all Australians in the form of higher corporate taxes, revenue that is crucial to maintain the world-leading standard of living we enjoy in this country.”
Along with Brazil, Australia is one of the leading producers of iron ore, with the global supply forecasted to increase by 0.9% annually through 2027, as reported by Mining.com.au.
The commodity has seen a 3.89% decrease over the past year according to Trading Economics.
As of 3 October, iron ore is priced at US$104.10 ($157) per tonne.
Write to Maddison Elliott at Mining.com.au
Images: CMEWA & iStock
