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  • Taxable income

    Taxable income is a company’s total income minus expenses, which is therefore affected by revenue growth and market conditions impacting deductions (for example, interest rate changes will affect a company’s borrowing expenses). Non-mining segments have experienced either declines or low growth in taxable income over the past five years. The mining, energy and water segment is the biggest contributor to the overall increase in taxable income, with steady and consistent growth over the past five years.

    Figure 12 shows the trend in taxable income by industry segment over the past five years, Table 3 summarises this data. Taxable income was $208.4 billion in 2019–20, an increase of $0.2 billion (0.1%) on the prior year. All non-mining sectors have seen declines in taxable income this year due to rising costs and challenging market conditions.

    Figure 12: Taxable income by industry segment over five years

     This column graph shows the trend of taxable income over five years from 2015–16 to 2019–20, by industry segment (banking, finance and investment; insurance; manufacturing, construction and agriculture; wholesale, retail and services and mining, energy and water). With the exception of the mining, energy and water segment which shows growth in all five years, the remaining industry segments show both growth and decline at various times over the five years. This graph also shows that aggregate taxable income has increased over the five years.

    Table 3: Five-year trend of taxable income by industry segment ($b)

    Industry segment

    2015–16

    2016–17

    2017–18

    2018–19

    2019–20

    BFI

    70.8

    63.3

    74.9

    63.9

    60.2

    ISR

    13.1

    14.5

    14.4

    12.7

    10.1

    MCA

    12.4

    12.7

    14.9

    15.4

    13.3

    WRS

    34.7

    35.2

    40.0

    37.1

    34.8

    MIN

    11.0

    30.4

    49.3

    79.1

    90.0

    All industry segments

    142.0

    156.2

    193.6

    208.2

    208.4

      Last modified: 10 Dec 2021QC 67484