Once again, royalties are essentially the cost the companies pay for the stuff they are digging out of the ground. They are buying the raw product from the state governments. It is completely separate from taxes and should not be "added on" to what they claim as tax paid.

So your 42% number is irrelevent. It is not the tax they are paying, it is the tax they are paying plus the cost of the product they are selling before they have mined it.

With tax breaks, they pay very little tax compared to other industries. The larger mining companies have acknowledged this and never objected to the MRRT in principle. Investment has continued to increase unabated.

*With tax breaks, they pay very little tax compared to other industries.*

They are hardly tax breaks, simply deductions for expenditure on
new projects, which is part of mining. No other industry has to
invest such huge amounts to earn a living. If you had rather that
they stopped investing in new projects, to Australia's long term
detriment, then just say so.

DC you I assume you don't understand the tax system, which is not unusual, because it's complex.

Say a mine has one million dollars in net profit, after running costs have been deducted.

I assume you think they should be paying $300K in tax.

If this is your take on it, then this is where you are wrong.

Even in something as simple as Retail, you have your sales, less your cost of goods, which gives you your gross profit.

You then take out your running costs, this gives net profit. (the mimes one million)

Out of this net comes deductions, depreciation, interest, etc.

Once all these are deducted, you arrive at your taxable income, which i swhat you pay 30% of.

The mines are even more complex than that.

What many fail to appreciate is not so much the tax miners pay, but also the tax they generate, that simply wouldn't be generated if they did not mine and, as mining companies only deal with ligit companies, every cent they spend is accounted for and, every cent earned externally is taxed.

People also misrepresent the numbers miners employ, even you say they only employ 220,000.

So I ask you, what about the jobs they create in the support roles.

These Jobs quite simply would not exist if not for mining.

I live part time in a mining town in QLD, and the transformation I have seen in recent years is mind blowing.

Three pubs, full to the brim every night, whereas five years ago, they may have had two people all night.

Accommodation, you are lucky to get a single room on any given night.

Workshops flat out supporting mining.

90% of these jobs simply would not exist if not for mining.

And all these businesses and their workers pay tax.

So I would suggest that not only do they pay their fair share, but they create more than Their fair share.

It's a very brave government that is willing to place that at risk, especially in the likes of QLD where even with mining we are going backwards.

I understand what constitutes taxable income thanks very much.
However, deductions which don't apply to other industries reduce mining companies taxable income, therefore they are taxed less on their net profit than in other industries.

For the reasons you stated, i.e. that the mining industry creates so much for the economy in additional jobs and economic activity, I totally support these tax deductions, which I have stated 2 or 3 times already. My own employment relies on the continuing development of the mining and power generation industries, and to a sadly dwindling extent the manufacturing industry. All of my income is generated from these industries.

But, when these companies are making more than marginal profits, there needs to be a mechanism to bring them back in line to a fairer share of tax contribution.

Also, when you consider that manufacturing employs so many more, and if better supported could increase Australia's ability to value add to what is being produced by the mines, why aren't manufacturing companies given similar tax incentives?

*However, deductions which don't apply to other industries reduce mining companies taxable income, therefore they are taxed less on their net profit than in other industries.*

Well you haven't listed them, David, so I am sure which tax deductions
that you mean. The miners do a straight calculation. If the after
tax situation means that it makes more sense to develop mines
elsewhere, that is what will happen.

Manufacturing already receives huge handouts, just think of the
car industry, where we give them billions for nothing. Fact is that
we are just not very good at manufacturing, our costs are too high.

fuel subsidies
reduced tax payments for the gas industry’s production of condensate
tax write-offs for capital works
deductions for exploration and prospecting
accelerated depreciation write-offs

Like I said, I support all of these to encourage new investment, but you asked for a list.