Australia is an important part of Glencore’s global business and we have been investing here for nearly 20 years in a range of commodity industries across all mainland states and the Northern Territory

We are proud of the contribution we make in Australia, which extends far beyond our tax payments to State and Federal Governments.

Since 2007, our business in Australia has:

  • Invested over $23 billion in building new operations and sustaining existing operations, plants and infrastructure. This equates to an average rate of investment of roughly $2.5 billion every year or $7 million a day, every day for the past nine years.

  • Paid more than $10 billion in taxes and royalties to Australian Federal and State Governments, including more than $2 billion in corporate income tax.

In 2015 alone our business contributed more than $13.5 billion to the national, state and regional economies and paid $1.3 billion in Australian taxes and royalties, including more than $73 million in corporate income tax.

We comply with all our tax and financial reporting obligations in Australia.

Corporate tax is paid on the profits generated by our businesses, and mining royalties are generally calculated and paid as a percentage of revenue. Our business is cyclical, highly capital intensive and investment is long-term in nature. Our profitability is impacted by commodity prices, exchange rates and the cost of doing business in Australia.

Glencore’s investment decisions are influenced by the competitiveness and stability of a country’s regulatory and fiscal framework.

We support a constructive and informed public debate around taxation reform because it is directly linked to the future of investment in Australia and the country’s trade competitiveness.

Glencore is listed on the London Stock Exchange, with secondary listings in Johannesburg and Hong Kong. We participate in numerous tax transparency initiatives including the European Union directive under which we will disclose all tax and royalty payments, per project, greater than €100,000 to all Governments.


$10 billion

PAID IN TAXES AND ROYALTIES BY GLENCORE OPERATIONS TO AUSTRALIAN GOVERNMENTS SINCE 2007


$23 billion

INVESTMENT IN AUSTRALIAN PROJECTS AND OPERATIONS SINCE 2007 (OUTSIDE OF MERGERS AND ACQUISITIONS)


$9 billion

SPENT ON GOODS AND SERVICES IN AUSTRALIA IN 2014

10 April 2015: Glencore Opening Statement
02 February 2015: Submission to the Senate Committee Inquiry on Corporate Tax 

Glencore’s economic contribution in Australia (A$)

  2013 2014 2015
 Direct employment  19,000  18,000 16,000
 Salaries & Wages  $1.8 billion  $1.8 billion $1.9 billion
 Goods & Services  $8.3 billion  $7.8 billion $9.0 billion
 Taxes & Royalties  $1.1 billion  $1.2 billion $1.3 billion
 Capital Investment  $3.2 billion  $2.0 billion $1.3 billion

 

Taxes and royalties paid since 2007 (A$)

 
Corporate Tax
Royalties
Company Payroll and Other Taxes
TOTAL
Federal Government
$2,290 m
 -
$2,256 m
$4,546 m
State Government
-
$4,550 m
$1.014 m
$5,564 m
Total
$2,290 m
$4,550 m
$3,270 m
$10,110 m

All figures noted in this factsheet are represented in Australian dollars (AUD).

December 2015 ATO public disclosure of CY13 data

Australian tax law now requires the ATO to publicly disclose certain tax information for companies filing Australian corporate tax returns with annual gross revenue of A$100 million or more.

This reporting includes the following Glencore Australian subsidiaries:

  • AZSA Holdings Pty Ltd
  • Clermont Coal Mines Ltd
  • GHP 104 160 689 Pty Ltd
  • Glencore Australia Investment Holdings Pty Ltd
  • Glencore Investment Pty Limited
  • Oakbridge Pty Limited
  • Resource Pacific Holdings Pty Ltd
  • Ulan Coal Mines Limited

Some of these companies and company groups are partly owned by Glencore, so we are unable to file a single Australian group tax return due to various incorporated joint ventures (especially in our coal business) and other shareholdings.

On 17 December 2015, the ATO disclosed the following aggregated data for the above Glencore Australian companies based on calendar 2013 Australian tax returns:

Data Definition Aggregate Amount A$
Total income

Gross revenue such as sales
revenue, foreign dividends. This
revenue amount does not include
the cost of doing business.

$24 billion
Taxable income

Gross assessable revenue
less allowable tax deductions
(ie operating expenses, tax
depreciation), and less any
available tax losses

$315 million
Tax payable

Taxable income multiplied by the
Australian 30% company tax rate,
less any tax credits

$88 million

Corporate tax is payable on taxable net profits, not on gross revenue. Our revenues come from the sale of bulk commodities such as coal, copper, nickel, zinc and grain. These revenues do not include the substantial costs of production in terms of labour, materials, fuel, other goods and services and the investment required to build, maintain and enhance our operations.

In 2013, Glencore acquired Xstrata and inherited tax losses including from Xstrata’s $3 billion Jubilee nickel acquisition in Western Australia. Jubilee’s mining operations subsequently proved uneconomic, production ceased and the mines were closed or sold.

Glencore has continued to make Australian corporate tax payments notwithstanding these available tax losses. We make a significant contribution to Australian Government revenues in addition to company tax.

Our reported revenue and tax information for 2013 and 2014 includes financial and tax data from the Xstrata assets. Since Glencore’s acquisition of Xstrata we have embarked on a streamlining initiative to simplify our corporate public and compliance reporting.

Glencore is listed on the London Stock Exchange (LSE), with secondary listings in Johannesburg and Hong Kong. As such we are subject to all LSE listing rule disclosures. We also participate in numerous tax transparency initiatives including: 

Transparency initiatives
and projects

Data reported
1. Annual Report Income tax expense, cash tax paid
2. Sustainability Report Taxes and mining royalties paid
3. ATO disclosures

Total income, taxable income and tax payable for companies with revenue of at least $100 m

4. EU Directive

Tax and royalty related payments, per project, greater than €100,000 to all Governments

5. OECD country by country filings

Income, taxes and business activities by country, legal entity details and employee numbers

6. Extractive Industries Transparency Initiative*

Tax and royalty related payments to all Governments

* The EITI project is a voluntary initiative

Download Glencore Australia Tax Factsheet