Today's release of the WA Government's Mid-Year Review confirms the resources sector is on track to contribute just under a fifth of overall general revenue, underscoring the industry's immense contribution to the essential services West Australian's rely on every day.
Chamber of Minerals and Energy WA (CME) Chief Executive Officer Rebecca Tomkinson said the $9.4 billion in royalties forecast for collection in 2024-25 was enough to more than cover the salaries of every public health worker and police officer in the State.
The resources sector is also the biggest source of payroll tax, which is now expected to total $5.8 billion in 2024-25.
"Despite a challenging year for global commodity markets, the resources sector remains the driving force behind WA's economy and our world-leading living standards," Ms Tomkinson said.
"Mining and energy extraction supports three in 10 jobs in WA and provides an incredible 19.2 per cent of government revenue through royalties alone.
"That money helps pay for everything from nurses and police officers to train lines and desalination plants."
The WA Government's revised $3.1 billion surplus for 2024-25 is largely driven by royalties, which are now predicted to total $9.4 billion. That compares to a forecast of $7.8 billion in the Budget delivered in May.
Despite the upgrade, iron ore royalties, which are the biggest contributor to WA's budget bottom line, are at their lowest in nearly two years as a result of weaker global demand and softer prices.
Other commodities such as lithium and nickel have also faced challenging market conditions that have had an impact on royalty revenue.
Lithium royalties have fallen to $216 million in the 2024-25 Mid Year Review compared with 2022-23, when they reached nearly $1 billion.
Ms Tomkinson said dramatic falls in nickel and lithium prices were a stark reminder of the cyclical nature of the resources industry.
"It's important for governments to act when necessary to support the sector through periods of temporary market weakness, like we saw through the lithium relief package announced last month," Ms Tomkinson said.
"Just as important is a laser-like focus on getting the basics right. That means speeding up project assessments and investing to maintain WA's standing as a premier mining province.
"Accelerating the decarbonisation of WA's power grids and further funding for well-located, turnkey industrial land are two of the best ways that can be achieved."
