Yesterday’s confirmation in MYEFO that higher mining profits have contributed to a $3.2 billion increase in projected corporate tax receipts in 2017-18 shows that Australian mining is paying more than its fair share in taxes to fund schools, hospitals, police and other essential services on which Australians depend.
The MYEFO numbers again demonstrate the size of the mining industry’s contribution to the Australian economy and are a wake-up call for those that claim the mining sector does not pay its fair share of tax.
The Australian minerals industry paid $165 billion in Federal company tax and state and territory royalties in the decade to 2014-15, and the mining sector contributed 19 per cent of all corporate tax collected in 2014-15.
The Minerals Council also welcomes the Government’s continued advocacy for additional cuts in the corporate tax rate. Our company tax rate is now the highest in the OECD, and too high for a capital-hungry nation which needs to encourage business investment.
The mining sector could perform at its best – generating additional jobs and wealth and improving the Budget bottom line – if Australia’s uncompetitive corporate tax rate was reduced.