WA resources sector injects $150 billion into economy
Western Australia’s resources sector injected a record $150 billion into the national economy in 2023–24.
This milestone marks the biggest outlay in the 10 years that the Chamber of Minerals and Energy WA (CME) has been compiling surveys on the economic contribution of resources.
The spending included $19.8 billion in wages to direct employees, $79.3 billion to local businesses, local governments and community initiatives, and $12.7 billion and $37.7 billion in taxes and royalties to the State and Federal Governments.
Nearly $90 billion of the direct spending occurred in WA, reinforcing the sector’s role as a key economic driver, supporting three in 10 jobs and contributing to one-third of the WA Government’s general revenue.
The $12.7 billion in state royalties and taxes was enough to cover the salaries of all WA police officers and public sector teachers, nurses and doctors.
Meanwhile, the $37.7 billion paid to the Federal Government was almost equivalent to the total cost of Medicare benefits and services.
CME chief executive officer Rebecca Tomkinson welcomed the record results but warned that the industry needs greater government support in the future.
“These figures reflect a high-water mark for the resources sector but the tide has now decisively turned,” she said.
“Direct spending by the WA resources sector is up 13 per cent compared to FY23 [the 2022–23 2022-23] while export values are down 7.5 per cent, squeezing margins and driving project closures.
“That is the reality politicians need to keep front of mind as industry now confronts falling commodity prices, rapidly rising costs, blowouts to project assessment timeframes and uncertainty over environmental reforms.”
The survey also found that the WA resources sector directly employed more than 111,000 full-time workers nationally in FY24 while supporting an additional 730,000 jobs – equivalent to six per cent of Australia’s total employment.
The majority of the sector’s direct spend of $88.2 billion, centred in WA, benefited more than 18,000 local businesses, 36,000 contractors, 101 local councils, and nearly 2000 community organisations.