Skip navigation

Clancy Yeates
May 1, 2012

An undated company photograph shows heavy machinery operating on Iluka Resources Ltd.'s Douglas Mine Site in Murray Basin, Australia, provided to the media on Tuesday, Feb. 19, 2008. Iluka Resources Ltd., the world's biggest zircon producer, will post second-half and full-year results on Feb. 21. Source: Iluka Resources Ltd. via Bloomberg News
 Emailing: 21074462_H397943.jpgThe Tax Office collected $6.78 billion from miners in 2009-10, compared with $13.38 billion a year earlier.

NEW figures reveal the mining industry’s corporate tax bill almost halved in 2009-10, the year it launched an aggressive campaign against Labor’s failed resources super profits tax.

The Tax Office collected $6.78 billion from miners in 2009-10, compared with $13.38 billion a year earlier, amid a slump in the industry’s taxable profits, figures published yesterday show.

Amid speculation miners could be targeted in next week’s budget, the figures also showed miners’ growing use of tax breaks that are rumoured to be on the chopping block.

In response to former prime minister Kevin Rudd’s super profits tax in May 2010, the industry unleashed a sweeping campaign saying the levy risked killing the goose that was laying the golden egg. It was called off after Julia Gillard became Prime Minister and began talks over a softer tax.

The new Tax Office figures show as the battle was being fought, the industry’s corporate tax bill was falling as its use of tax breaks rose. Despite paying less, mining remained the second biggest source of company tax revenue after the financial services industry, which paid $23 billion. The main reason for the lower tax receipts was a $49.6 billion fall in mining company income, as weak global conditions hit profits.

A spokesman for the Minerals Council of Australia said the slump was caused by falling commodity prices and overseas demand, and was consistent with earlier estimates.

Mining also had the highest share of companies that pay no tax.

Read more:


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: