08 September 2021
BHP today released its economic contribution figures for the 2021 financial year, with the company contributing $34.1 billion in economic value to the Australian economy.
The figures form part of BHP’s global Economic Contribution Report, to be released in mid-September alongside the company’s annual and sustainability reports.
The total contribution to Australia comprises $12.4 billion in tax, royalty and other payments to governments, $11.1 billion of spending with suppliers, $6 billion in dividends and interest, $4.5 billion in employee wages, and $100 million in community investment projects.
BHP President Minerals Australia Edgar Basto said: “The past 18 months have thrown unprecedented challenges at all Australians, and we know many in the community are doing it tough.”
“It is through the commitment of our people, and the support of governments, communities, suppliers and traditional owners, that we have been able to keep operating safely through the pandemic. We are grateful for their support and the contribution that our continued operation has been able to make to the broader Australian economy during this time,” Mr Basto said.
“We are determined to keep playing our part in supporting regional communities and the national economy through jobs, skills, supplier opportunities and social investments.”
BHP Chief Financial Officer David Lamont said: “We are proud of the role we play in Australia’s economy through our operations and exports, and we know that will be important to the nation’s ongoing recovery.”
“BHP will continue to invest in Australian regional jobs, businesses and communities, and we hope our ongoing work with METS sector companies and seven-day payment terms for small, local and Indigenous businesses will create further opportunities, particularly in regional areas.”
All figures are in Australian dollars.
BHP is one of the largest taxpayers in Australia. Over the past decade, BHP has paid $80.3 billion in taxes, royalties and other payments to governments in Australia. In the 2021 financial year, BHP’s adjusted effective tax rate in Australia was 41.4 per cent including royalties.
BHP announced a range of initiatives in the 2021 financial year to support regional Australian communities and economies in the response to COVID-19 and in the recovery:
- Pledge to create 2500 apprenticeship and traineeship opportunities over five years through $300 million of investment in the BHP FutureFit Academy.
- Commitment to up to $450 million in contracts with Australian METS companies and advancement of the sector over five years.
- The $30 million Future of Work Program in partnership with the Commonwealth Department of Education, Skills and Employment to create new training opportunities for up to 1000 Australians in regional areas.
- Ongoing delivery of the $50 million Vital Resources Fund established early in the pandemic to support local health services, businesses and community groups.
- Implemented seven-day payment terms for all small, local and Indigenous businesses across Australia.