Rio Tinto – reported half year results on 1 August 2018
New analysis by The Australia Institute shows that based on Rio Tinto’s half year report, the company tax cut would be a $7.67 billion gift over the first decade of the cut to just this one company.
| Rio Tinto | $ million |
|---|---|
| Worldwide Income 2017-18 | 54,844 |
| Profit 2017-18 | 19,699 |
| Company tax 2017-18 | 2,531 |
| Benefit from company tax cut based on 2017-18 profit | 422 |
| Benefit from company tax cut based on expected 2026-27 profit | 624 |
| Benefit from company tax cut for decade 2019-20 to 2028-29 | 3,051 |
| Benefit from company tax cut for decade beginning 2026-27. | 7,667 |
When the full cuts come in (2026-27) the lost company tax revenue just to Rio Tinto would be the equivalent of employing 8,450 nurses, 7,610 secondary school teachers or 6,310 police officers.
(Based on the average payments for different occupations in May 2016 and updating for the actual and projected wage price index, and projecting forward Rio Tinto’s profit.)
Rio Tinto has reported profit for the first half of 2018. To get an annual result the second half of 2017 has been added. Rio reports in US$ so all values have been converted into Australian dollars at the current exchange rate (US$1 = A$1.35 at 4 pm 1 August 2018).
The figures for Rio’s tax are given after deducting tax paid in the UK.
Between the Lines Newsletter
The biggest stories and the best analysis from the team at the Australia Institute, delivered to your inbox every fortnight.
You might also like
5 ways and 63 billion reasons to improve Australia’s tax system
With a federal election just around the corner, new analysis from The Australia Institute reveals 63 billion reasons why our next Parliament should improve the nation’s tax system.
Taxes on tampons, tax breaks for luxury utes: gender in the budget
Last week, the federal government announced plans to define menstrual products as “lifestyle-related” and exclude them from NDIS funding.
Whether Australia’s budget has a surplus tells us little about the government’s worth – it’s all on the choices made
We are now a month away from the 2024-25 budget. And as with all budgets, the choices made matter much more than any big numbers that get the media attention.