Antinuclear

Australian news, and some related international items

Australia’s mining lobby exaggerates by $45 billion the taxes and royalties they pay

Mining lobby exaggerates taxes and royalties paid by $45 billion, Michaelo West Media, by Callum Foote | May 21, 2021,

The mining industry has exaggerated its contribution in taxes and royalties to Australian governments by an estimated $45 billion over the past 10 years. Callum Foote reports on the findings of an independent research project by Michael West Media.

The mining lobby and its “independent experts” from Deloitte Access Economics have routinely overcooked the contribution that mining companies make to Australia.

Michael West Media was commissioned to undertake an investigation into Australia’s mining royalty regime by the Neroli Colvin Foundation.

The report, A Fair Share?, found the mining lobby exaggerated by 19% its contribution to Australian government revenues through royalties and taxes for the period where government data has been made available, or an estimated $45 billion over the past decade.

The mining industry sold $2.1 trillion worth of Australian resources overseas in the past decade but Australian governments received less than a 10% return. The actual rate – 9.1% – covers royalty payments and taxes paid. If we consider only royalties, then the rate drops to 5.6% of the value of exported resources.

The mining industry regularly combines royalties and taxes but this is misleading when talking about its contribution to Australia.

Less than 10% of $2.1 trillion worth of Australian resources is perhaps not the “staggering” contribution as described by Resources Minister Keith Pitt earlier this week on the release of the latest Minerals Council report.

This is particularly the case given that the large mining houses are owned by foreign shareholders, so are the largest beneficiaries of Australia’s mineral wealth.

Michael West Media has found that, on average, mining companies make a 1654% revenue mark-up on Australian commodities………..

In Australia, all mineral commodities below the earth are owned by the Australian people. It is up to State and Federal governments to sell these commodities to mining companies that wish to extract and process them for selling. In accounting terms, royalties are deemed to be a “cost of goods sold”.

Just as a baker must buy raw flour from a mill and process it into bread to sell, royalties are the payment made by miners to the Australian people for the raw commodities that they then sell internationally.

Deloitte’s most recent report is more accurate than previous estimates of mining taxes and royalty payments. Michael West Media had contacted the firm for comment before it published this report because it was found that royalty and taxation figures were previously exaggerated by 33%, or $78 billion, for the period between 2010 and 2017………

The total export value of Australian commodities over the period, which is indicative of the revenue these companies have made from selling Australian resources overseas, is $2.1 trillion. This means that only 9.1% of the export revenue made by these companies has been paid to state and federal governments. ……………. https://www.michaelwest.com.au/mining-lobby-exaggerates-taxes-and-royalties-paid-45-billion/

May 22, 2021 - Posted by | AUSTRALIA - NATIONAL, business, politics

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