As the debate rages about the contribution of mining to government coffers, the industry has revealed that its members paid nearly $500 million in payroll tax last financial year, over one fifth of the money received by the state via that source.
Payroll tax has become a big earner for Western Australia, and the mining sector pays a bigger proportion per capita due to the high wages in the sector.
Just how much mining punches above its weight in payroll tax is shown by the Department of Training and Workforce Development statistics which show that in 2009, 5 per cent of WA workers, or 57,600 people, were employed in the mining industry, making it the 10th largest employing industry in the state.
According to the department, mining includes all resources-related employment.
Following a request from WA Business News, the Chamber of Minerals and Energy said it had obtained figures from state Treasury showing the industry's contribution was significant.
The CME said Treasury analysis of payroll tax data for 2008/09 showed that $474.3 million, or around 21.2 per cent of tax raised in that year, was attributable to the mining industry which was the biggest industry contribution to the tax.
This payroll tax contribution was based on taxable wages totalling $8.9 billion, declared by 689 employers.
Payroll tax is over and above mining royalties which are budgeted to be $3.27 billion in 2010-11, including $2.67 billion from iron ore, from a total royalty base including grants linked to the North West Shelf of $4.26 billion.
Mining royalties 2000-01 were $685 million, including iron at $279 million, from a total royalty base including the grants linked to North West Shelf of $1.16 billion.
In other words iron ore royalties have increased nearly 900 per cent, in line with the revenue growth from this sector, as would be expected from an ad valorem tax.
