Royalties disparity

WA’S mining industry contributes about 45 per cent of the value of Australia’s mineral production yet mineral royalties paid to the WA Government are only about 31 per cent of the total royalties paid.

According to the September quarter Australian Commodities: Forecasts and Issues released by the Australian Bureau of Agricultural and Resource Economics in 1997-98, the WA Government received $717 million in royalties.

Victoria’s Government received $965 million, or 42 per cent, of the total paid by the Australian mining industry despite being the smallest mineral producer with just 10 per cent of mineral production.

While there seems to be a disparity in WA, the state is not alone. All the mainland states – apart from Victoria – have received a share of the $2.2 billion royalty, which does not reflect the contribution to the $34 billion Australian industry.

Royalty expenses for WA mining companies accounted for 4.6 per cent of revenue compared with the Australian average of 6.7 per cent.

In Victoria, the government takes about 28 per cent of mining revenue.