Minerals industry is Olympic gold medallist with paying tax

The Commissioner of Taxation’s reference to resource groups and Olympic drug cheats is disappointing and factually incorrect in relation to the minerals industry.

The fact is the minerals industry has been paying tax consistently for years and record amounts over the last decade.

The latest EY report commissioned by the MCA highlighted the record company tax and royalty payments made by the minerals industry showing in the last decade the mining industry contributed $254 billion in company tax and royalties.

Furthermore, the ATO’s own data released in December 2021 (ATO Corporate Tax Transparency Report) showed that the minerals industry contributed more than 40 per cent of all the company tax reported by the 2370 large entities.

BHP and Rio Tinto, paid more than $10 billion in company tax in the 2019-20 tax year.

The Commissioner implies that if not for ATO audit activity tax settlements reached with Rio Tinto and BHP would not have occurred. This is incorrect. The matters settled in those cases were raised by the taxpayers with the ATO in the normal course of flagging issues where the tax treatment is not clear cut. In the case of the issues settled with Rio Tinto, the marketing hub matters were first raised by them with the ATO in 2005.

The Commissioner refers to eliminating more than $30 billion of resource company losses. This does not relate to the minerals industry.

The matters settled by Rio Tinto and BHP relate primarily to transfer pricing. These are complex matters that involve not just the ATO but also foreign revenue authorities that have their own view as to the appropriate outcome.

The minerals industry pays the highest wages, generates substantial economic activity, pays the most company tax and delivers the most export revenue.

Company tax payments from the minerals industry help fund better services for the community, including mental health, aged care and woman’s programs.

Australian mining can be relied upon to pay its fair share of tax and royalties to pay for schools, hospitals and other infrastructure.

A strong mining industry is essential to Australia’s economic success.

When mining is strong, all Australians win.

ends