BHP contributes $60 billion to Australian economy in FY23

(Posted on 19/09/23)

BHP contributed $60 billion (AUD) in economic value to the Australian economy in the 2023 financial year, through wages, dividends, supplier payments, taxes, royalties and community investments.

BHP disclosed the figures in its 2023 Economic Contribution Report, which highlighted:

$19.1 billion spent with Australian suppliers. This includes $400 million spent with Indigenous suppliers as part of a commitment to invest $1.5 billion with Indigenous businesses by 30 June 2027.

$18 billion in taxes, royalties and other payments to Australian governments – bringing BHP’s total tax and royalty payments in Australia to over $100 billion in the past 10 years.

$17.5 billion in dividends to Australian shareholders. More than 17 million Australians benefit from BHP dividends either directly as shareholders or indirectly through superannuation.

$5.3 billion in employee wages.

The BHP FutureFit Academy, launched in 2020 with a $300 million commitment to create 2,500 new traineeships and apprenticeships over five years, has to date welcomed more than 1100 people and turned out 500 graduates who have joined BHP in permanent jobs.

$86 million in community investments.

BHP remains one of the largest taxpayers in Australia and expects to fund approximately 8% of total Australian company tax for the 2023 financial year – at an adjusted effective tax rate of 32.1% rising to 44.9% when royalties were included.

BHP operated projects contributed 10% and 11% of all revenue (excluding grants) in Queensland and Western Australia, respectively.

BHP President Australia Geraldine Slattery said: “Australia’s regional and remote communities are so important to BHP, and operating in a way that benefits the areas where we operate is at the heart of our approach.”

“BHP is a major contributor to Australia’s national economy and regional communities through jobs, training, local and Indigenous suppliers, taxes, royalties and social investments. We will continue to work in partnership with our many stakeholders to support Australia’s economic prosperity as we deliver the minerals needed for global economic development and decarbonisation.”

BHP Chief Financial Officer David Lamont said: “BHP remains one of the largest taxpayers in Australia, delivering over $100 million in taxes and royalties to federal and state governments over the past 10 years.

“BHP’s dividends benefit roughly 17 million Australians who hold shares in the company, either as direct investors or through their superannuation. BHP was the largest dividend payer on the ASX100 over the past two financial years, paying around one fifth of all dividends on that index.”