24 Mar 2021
SACOME study highlights important contribution of South Australia’s resources sector
The South Australian Chamber of Mines & Energy (SACOME) has released an economic study suggesting that just 12 of its members helped drive South Australia’s economic recovery by contributing more than $5.9 billion in direct and indirect spending to the state economy in 2019-20. This is the equivalent of 5.3 percent of gross state product (GSP) in the same period, meaning about one dollar in every twenty is created by the state resources sector, including oil and gas producers.
SACOME CEO Rebecca Knol said that the scale of the resource sector’s contribution showed the importance of bipartisan political and policy maker support for the industry’s continued growth.
“Continued growth of the sector will translate directly to growth in the number of highly paid jobs available to South Australians,” she said.
“With the 2022 State Election looming, policies that facilitate the growth of the South Australian resources sector are SACOME’s key concern. Our sector has continued to support the State throughout the COVID-19 pandemic and stands ready to assist with both economic recovery and economic growth.”
The report also found that the 12 companies involved directly employed 5,489 local South Australians and paid them a total of $747.3 million in wages and salaries, which was then spent in local communities. The companies surveyed also supported the employment of a further 24,895 workers, spent $1.7 billion to purchase goods and services from nearly 2,000 local businesses and paid $435.8 million in land and payroll taxes, royalties, and stamp duty.
In addition, eight of the top ten electorates benefiting from the South Australian resources sector were found to be in metropolitan Adelaide, indicating a wide reach extending far beyond regional communities.
The report reflects similar findings from APPEA in December 2020 regarding the significant contribution made by the oil and gas sector. APPEA’s 2018-19 Financial Survey showed that Australia’s oil and gas industry contributed direct tax payments amounting to $5.85 billion in the last financial year. With the right investment settings, Australia could reap the benefits of $350 billion in government revenue and economic dividends over the next two decades, according to EY.
The research is clear – Australian resources, including oil and gas, play a vital role in Australia’s economy, and will continue to do so for many years to come.