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BHP 'contributed $79bn to Aust economy'

·2-min read

BHP says it paid $18.5 billion in taxes, royalties and other direct payments to Australia's federal and state governments in 2021/22, and estimates it paid around 10 per cent of all company tax in Australia that year.

Overall The Big Australian said its contribution to Australia's economy in fiscal 2022 was $79.3 billion, including $16.5 billion spent on suppliers, $39.6 billion in dividends returned to shareholders and $4.6 billion on wages paid to its workforce of 50,000. It also invested $106 million on social projects.

"It has been a tough couple of years for many Australians, and we are proud to be able to make an economic contribution of nearly $80 billion through our operations and exports, local employment and business spend including seven-day payment terms for small, local and indigenous suppliers, direct economic input through taxes and royalties, and widespread community support," said BHP Minerals Australia President Edgar Basto.

Worldwide the mining giant said it contributed $US78.1 billion ($A114 billion) to the global economy, included payments to suppliers, wages and benefits, taxes, royalties and investments in social projects.

BHP said it paid $US17.3 billion ($25.4 billion) directly to governments, 77.5 per cent of which was to governments in Australia.

BHP said its global effective tax rate was 32.1 per cent, or 38.9 per cent including royalties. Its Australian tax rate was 42.7 per cent, including royalties.

BHP said based on figures from the 2022/23 federal budget, it's expected that 10 per cent of all company tax paid in Australia in the 2021/22 financial year will be paid by BHP.

The largest company in Australia and the second-largest miner worldwide, BHP has paid over $90 billon in taxes and royalties to governments in Australia over the past decade.

In NSW and Queensland, higher coal prices meant BHP paid significantly more royalties in 2021/22 than the previous year.

In NSW it paid $264 million, three times the $83 million in 2020/21. It paid $1.9 billion in Queensland, five times the $402 million the year before.

Mr Basto said that BHP would "continue to invest in the skills, training, technology and innovation needed to support the next chapter of Australia's economic development, particularly in regional areas."

BHP also highlighted its work with suppliers, such as Port Augusta-based, Indigenous-owned plant maintenance company Outback Mining Services, which has eight of its 30 employees working at BHP's Olympic Dam mine and got its start through a BHP local-buying business incubator.

"BHP's seven-day payments for local businesses has helped OMS to grow more quickly, had a positive effect on cash flow, and helped us to meet demand," said director Jared Davies.