Policies
Mining, Resources & Energy
THESE INDUSTRIES SHOULD PUT SOMETHING BACK IN
- The introduction of Resource Super Profits Tax (RSPT)
- An alternative to paying the RSPT
- Using those super profits to build a better environmental future
Policy Summary
Australia has vast mineral wealth, but once it's dug out of the ground and sent overseas, it's gone. The Good Party thinks a royalty levied on these finite resources is fair and reasonable.
Royalties could be adjusted as world market prices move up or down to be equitable for both the miners and the nation.
And in more detail...
Most other countries use a royalty mechanism, and Norway has built a $1 trillion sovereign wealth fund based on royalties for its oil and gas.
Since 1996 Norway has been taxing the profits of its oil and gas sector at 78%. In 2023, this has generated a staggering A$127 billion or around $23,500 for every Norwegian citizen (figures from The Australia Institute).
Meanwhile, Australia’s tax on the gas sector in the same period generated a measly $16.3 billion.
Mining companies' argument that they pay taxes and provide jobs doesn’t hold up when you examine it closely. The taxes paid are always minimised, and the jobs are rarely permanent, with the mining operation folding when the resource runs out or the market dips.
For example, the WA Government is expected to receive $522 million in royalties from the gas industry in 2024-25, down from $660 million in 2023-24, and will contribute just 1.3% to state government revenue.
This is less than half of the $1.319 billion expected from vehicle registration fees.
The gas industry also pays little in federal tax – the combined tax payments of Chevron, Exxon, Woodside, and Shell raise less money than beer excise.
And just 0.7% of the state’s workforce is employed in oil and gas extraction.
Mining companies' argument that they pay taxes and provide jobs doesn’t hold up when you examine it closely. The taxes paid are always minimised, and the jobs are rarely permanent, with the mining operation folding when the resource runs out or the market dips
How miners could reduce their royalties and do some good
The Good Party can also see a way to make everyone happy. The miners could reduce their royalties by investing in green energy projects like green hydrogen to replace coal and gas in power stations or use in the production of green steel and aluminium. Win-win.
It really is time for the mining industry to put something back. The mining boom might well have come off its peak, but when enormous profits are being generated. Australia should receive a long-term benefit for giving mining companies the green light to have access to our finite resources
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