The Big Australian

The Big Australian Pays Up

The federal government is expected to report an astonishing $120 billion in company tax was collected during the past financial year, when it reports its first budget papers next month.

Perhaps more astonishing is the fact that one company, the giant mining company BHP is expected to account for a whopping 10 per cent of this revenue with its fellow miner, Rio Tinto not far behind it.

The fact these two companies can account for almost 20 per cent of all company tax revenue finding its way into Federal Government hands should make us all reconsider our attitudes towards mining companies.

It is easy to think these rivers of gold flowing into Treasury coffers are unending but of course they are not. They reflect the hard work of many in the mining industry, spurred on by record high iron ore prices and astute management. They can easily be put at risk.

Of course, this is just part of the benefit these companies provide Australians. BHP has just posted a fully franked $2.47 dividend which, while not a record high dividend, will deliver billions into the hands of Australian shareholders this financial year.

BHP chief Mike Henry recently pointed out just how important the company’s role was in job creation, taxes and royalties paid as well as its social contribution.

“I think any place that BHP is operating can rest assured that front and centre for us is whether the communities we operate in and whether the host governments we operate under are benefiting from BHP’s presence.”

So, while I fully support accelerating the push toward achieving a low carbon economy in Australia, I think we need to be mindful of the contribution mining has always made to Australia’s prosperity.