Australian mining companies paid 330% more tax in 2016-17 - Deloitte
Australia’s mining companies contributed 330% more tax in the 2016-17 financial year than the previous period, paying $12.1bn into the country’s economy, new research shows.
A report by Deloitte Access Economics found that the industry also paid $11.2bn in royalties in 2016-17, providing total revenue to commonwealth and state governments of $23.3bn in company tax and royalties in 2016-17, double the previous year.
In total, mining companies are thought to be paying around one in every dollars of all Australian corporation tax.
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The major reason behind this surge in tax contributions is the recovery of commodity prices, which is leading to higher profits.
The increase in royalties follows a significant investment in new production over recent years, which is delivering a strong dividend to the states from royalties which are based on production figures.
Deloitte’s report traced payments made to the treasury dating back 12 years. In this time, mining companies have paid $203.6bn in company tax and royalties.
In terms of regional performance, the report outlines which states produced the most royalties. In the 2016-17 period, Western Australia contributed $5.26bn, around half of the country’s total. Queensland contributed $3.9bn, followed by New South Wales ($1.56bn). All other states combined to produce $498mn in royalties.
The sharp rise in tax payments is elevating the sector’s contribution to heights not far from those seen in the mining boom years. At the boom’s height, company tax paid was above the $14bn mark.
Timeline: India takes unicorn leap with six in five days
We chart an historic week in India’s tech industry, where in just five days, between 5-9 April 2021, the country achieved six new unicorns, bringing India’s total to 10 in 2021 to date, an immense unicorn leap from just seven in 2020 and six in 2019.
April 5: Meesho
India’s first social commerce unicorn, Meesho raised US$300m from SoftBank, Facebook and Shunwei Capital, giving the Bangalore-based startup a US$2.1bn valuation, a threefold jump from its previous funding round in 2019. Founded in 2015 by two IIT-Delhi graduates, Meesho connects producers and resellers, helping small businesses sell through social media. It has 45m customers and has enabled 13m entrepreneurs to start their online businesses with no investment.
April 6: CRED
Founded just over two years ago, Bangalore-based credit card repayment app CRED raised US$215m from Falcon Edge Capital and Coatue, nearly trebling its valuation to US$2.2bn from its January US$80m round. Allowing customers to pay off their credit card debt while earning CRED coins which they cash in for rewards, CRED has grown rapidly during COVID-19, doubling its customer base to nearly 6 million in a year.
April 7: API Holdings / Groww
The first epharmacy startup to gain unicorn status, PharmEasy (API Holdings), which has digitised 60,000 brick and mortar pharmacies and 400 doctors across India, raised US$350m in a round led by Prosus Ventures. Founded by four former Flipkart employees as a way of making investing simple, investment platform Groww became India’s second-youngest fintech unicorn, raising US$83m in Series D funding led by Tiger Global, quadrupling its previous round in September.
April 8: ShareChat
New Delhi-grown social media startup ShareChat, founded in 2016 by Mohalla Tech raised US$502m from Lightspeed Ventures, Tiger Global, Twitter and Snap taking its raised total over six rounds to US$766m and pushing its valuation to US$2.1bn. The funding will be used to grow its user base and short video platform Moj, which launched in 2020 following TikTok’s ban in India. The regional language startup claims 280m users.
April 9: Gupshup
AI-led conversational message startup joined the unicorn club after raising US$100m from Tiger Global giving it a ten-fold valuation of US$1.4bn. The smart messaging platform, which has seen accelerated growth during the pandemic, was founded in Bangalore in 2005 by serial entrepreneur Beerud Sheth, whose online freelancing platform Elance is now listed. Gupshup’s API enables 100,000+ businesses to build messaging and conversation experiences across 30+ communication channels.