The resources sector has once again emerged as Australia’s biggest taxpayer, with the ATO Corporate Tax Transparency Report revealing major mining and energy firms contributed $48 billion in company tax in 2023-24.
For a third consecutive year, company tax paid by the resources sector accounted for more than half of the total ($95.7 billion in FY24) collected from large corporations.
Chamber of Minerals and Energy WA (CME) members alone paid $37.3 billion in corporate tax and petroleum resource rent tax, representing 38.4 per cent of company tax collected from large businesses.
CME Director Policy and Advocacy Anita Logiudice said the result highlighted the outsized contribution of the resources sector to funding essential services and infrastructure.
“The resources sector is the foundation of Australia’s prosperity – and that foundation is firmly anchored in WA,” Ms Logiudice said.
“The $37.3 billion in taxes paid by the Australia-wide operations of CME member companies last year was more than enough to fund total Medicare payments.
“Separate CME analysis found the WA resources sector supported 10 per cent 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.”
CME members BHP ($8.1 billion), Rio Tinto ($6.8 billion), Fortescue ($3.9 billion), Chevron ($3.5 billion), Woodside Energy ($3 billion), Glencore ($1.9 billion), Hancock Iron Ore ($1.6 billion), Shell ($1 billion) and Mitsui ($1 billion) all ranked among the top 20 highest corporate taxpayers in 2023-24.
Weaker commodity prices impacting the profitability of resources companies was the primary driver of a small fall in the total corporate tax collected from large corporations, which decreased from $97.9 billion in FY23 to $95.7 billion in FY24.
As the Productivity Commission embarks on a review of the GST distribution, Ms Logiudice said the ATO report was a timely reminder of the long-term benefits of supporting the development of the resources sector.
“The GST system must incentivise States and Territories to grow their economies and develop the resources at their disposal,” Ms Logiudice said.
“The WA Government has invested significantly in the infrastructure that underpins the resources sector – including roads, ports, airports, the Dampier to Bunbury gas pipeline, electricity and water.
“A fair share of GST is critical for the WA 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.
“As demonstrated by today’s ATO report, 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.”
Media contacts:
Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719
Natasha Mutch n.mutch@cmewa.com / 0435 383 382