Australia’s minerals industry is expected to pay a record $23.4 billion in taxes and royalties to Federal and State Governments in 2010-2011, according to new research.

A report from Deloitte Access Economics (DAE) shows, the minerals sector company tax is expected to reach $14.6 billion in 2010-11, exceeding the previous peak of $13.2 billion in 2008-09 and 42 per cent above average company tax payments of the previous three years.

State royalties from the minerals sector are expected to reach a record $8.8 billion for the 2010-11 financial year. Based on DAE estimates for 2010-11, royalty payments by minerals resources companies to State and Territory Governments have risen at an average annual rate of 25 per cent since 2004-05.

The combined company tax and royalty figure of $23.4 billion in taxation revenue in 2010-11 is greater than the Commonwealth’s annual expenditure on Australia’s defence forces.

When royalties are added, mining is clearly among the highest taxed industries in Australia, said Mitch Hooke, Chief Executive Officer, Minerals Council of Australia.

“The claim that traditional revenue sources from mining are unresponsive to movements in commodity prices is wrong,” Mr Hooke said.

“The revenue contribution from mining to Federal and State Governments has risen in line with higher commodity prices. Company tax and royalty payments combined have risen four-fold as a share of GDP over the last decade.