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Travel & Luxury | 12 November 2022

“It’s a nice problem to have,” said CommSec chief economist Craig James. “Demand for our commodities is soaring, and our trade surplus remains significant. Dollars are being injected into the economy at a time when the Reserve Bank is trying to slow growth in activity, income and spending. “At the same time, imports are also growing – highlighting an improvement in supply as well as higher prices. Overall, the trade situation is good news.”

Australia’s big miners including BHP, Rio Tinto, Fortescue and companies controlled by Gina Rinehart paid more than $28.5 billion in tax in 2020-21, accounting for nearly a third of total corporate tax revenue.

Despite conservative estimates, WA’s resources sector fires on all cylinders with record-high commodity prices pouring tens of billions of dollars into economy. Iron ore alone — the vast majority extracted from the Pilbara — accounted for nearly one-quarter of the nation’s record export earnings last year, pouring tens of billions of dollars into the economy through royalties and taxes and helping to slash the projected 2022-23 deficit in half.

A new report from the National Skills Commission is out, highlighting the areas where we are looking for workers amid what many industries say is a labour crisis not seen in years. “These issues demand strong industry and government collaboration. There is no silver bullet, but momentum on practical medium and long-term solutions must be escalated and maintained.”

WA’s powerhouse resources sector has delivered another record of $231 billion in the past financial year, the fourth record annual revenue figure in a row. The sector also provided job for a record 157,700 workers in the 2021-22 financial year, representing a 6 per cent increase on the previous year’s figureThe all-time high sales of $231b was up from $211b the previous year, $172b in 2019-20 and $151b in 2018-19. The WA figure represents 55 per cent of the national export earnings figure for resources and energy for financial year 2021-22, highlighting the importance of the WA sector to the national economy.

Western Australia’s resources sector has registered record sales of $231 billion and its highest-ever employment figures in 2021-22. This is the fourth financial year in a row the sector has delivered record revenue, following $151b in 2018-19, $172b in 2019-20 and $211b in 2020-21. Premier and Treasurer Mark McGowan said the results proved the state was the backbone of the nation’s economy.

WA iron ore has helped improve the Federal Budget deficit by $50 billion, Treasurer Jim Chalmers says, but warned it’s a temporary improvement as the Government prepares to finalise a spending audit. Dr Chalmers in Canberra on Tuesday also supported comments by Reserve Bank governor Philip Lowe that structural reform to the Budget was needed to ensure services the community wanted were provided without huge tax increases.

In September 2021, we found out the Government’s forecast $5.6b surplus for 2020-21 was actually $200 million more than expected, at $5.8b. That figure represented the biggest surplus recorded by a State government and was largely driven by record iron ore royalties. In May this year, the Budget papers forecast a nearly $5.7b surplus for 2021-22. But iron ore royalties and big dollars for the WA Government by way of property transaction taxes, mean the rivers of gold have continued to flow. It is quite feasible that the 2020-21 surplus record is about to be broken.

“The Japanese government has been asking the Australian government to implement any measure in such a way that it does not impact Japan’s supply of LNG from Australia, and the Japanese government will continue doing so,” a Japanese government official told The Australian Financial Review. He also said Korea was focused on securing more urgent supplies of critical minerals. “The sense of vulnerability they have because of china’s dominance of that market is enormous.” Senex Energy, a subsidiary of Korean steelmaker Posco and Gina Rinehart’s Hancock Resources, earlier this month announced plans for a $1 billion coal seam gas expansion in Queensland. Government and Japanese trading house sources in Tokyo said there was also a huge appetite by Japanese companies to invest in the Australian energy sector, particularly now that political risk meant China and Russia were being ruled out for new investments.