Mining Contributed Over $40 Billion to Australian Economy in Past Two Years

Australian moneyNew estimates by Deloitte Access Economics show that the minerals industry’s revenue contribution from
company tax and royalties in the two years to 30 June, 2014 will be $40.3 billion. This is $18.3 billion in
2012-13 and $21.9 billion in 2013-14. These figures exclude the Minerals Resource Rent Tax (MRRT) and
carbon tax.

Deloitte Access Economics also confirms a record tax and royalty payment of almost $24.5 billion by the
minerals industry in 2011-12.

A statement released by The Minerals Council of Australia this morning said, “Despite commodity prices falling by as much as 50 per cent since 2011, the large contribution to federal and state coffers puts to bed the false claim that the mining industry is not paying its “fair share”. It demonstrates yet again that the MRRT, which commenced on 1 July 2012, was not necessary for all Australians to share in the Millennium Mining Boom.”

“The mining industry, which directly accounts for around 10 per cent of GDP, pays almost 25 per cent of
company tax in Australia compared to 8 per cent of company tax a decade ago. The combination of
Australia’s relatively high company tax rate plus royalties makes Australia a relatively high tax minerals
province even without taking account of the MRRT.”

“Notwithstanding weaker commodity prices and squeezed margins over the last three years, the minerals
industry continues to deliver an extraordinary dividend to Australian Governments. The ramping up of
production and export volumes, the product of record new investment in the industry in recent years, is
helping to underpin mining’s tax contribution.”

“This is in addition to the wider economic return from higher incomes, massive investment, and stronger
communities that mining has delivered.”

“These numbers comprehensively puncture the wall of sound from the Greens and some commentators
determined to talk down mining’s contribution to Australian living standards. The mining industry tax
contribution sits beside the more than $30 billion the industry spends annually on community projects and
local businesses.”

“Yet this dividend cannot be taken for granted.”

“It is time to move on from the notion that there are easy gains from ever higher taxes on mining. The
challenge today is to improve productivity and competitiveness and to restore confidence in Australia as a
premier destination for mining investment.”

“That’s why the Senate should move as quickly as possible to repeal the MRRT. This will not only get rid of
an unnecessary burden on many coal and iron ore companies, it will also signal that Australia is
determined to hold its place as a stable and competitive supplier of mineral resources to the world.”

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