Debate Over Australian Mining Industry’s Tax Bill

by Mary Swire, Tax-News.com, Hong Kong

09 September 2011

Public perceptions of the size and significance of the mining industry to the Australian economy are radically different to the facts, a new survey by the Australia Institute has revealed.

When asked what percentage of workers they believe were employed in the mining industry, the average response was around 16%, when according to the Australian Bureau of Statistics (ABS) the actual figure is 1.9%.

The survey also found Australians believe that mining accounts for more than one third (35%) of economic activity. However, ABS figures show that the mining industry accounts for around 9.2% of GDP – about the same contribution as manufacturing and slightly smaller than the finance industry.

Dr Denniss, the Institute’s Executive Director, said the mining industry's expensive advertising campaigns had clearly had an impact on people's perceptions.

"The mining industry likes to portray itself as a big employer, a big tax payer and a big money maker for Australian shareholders. Yet the reality just doesn't match the rhetoric," said Dr Denniss.

The Australian Institute’s study is seemingly at odds with the study released earlier this week by the Minerals Council of Australia, which claimed that the total tax take from the large mining companies between 2007 and 2010 averaged at 41.5%.

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