BHP chairman Ross McEwan told the mining giant's annual general meeting the company was a global allocator of capital, which he said always flowed to projects, companies and countries that could deliver the best returns.
"Make no mistake, Australia must compete for capital if it wants to win - nationally, and in every state," he told the meeting in Sydney on Thursday.
Other nations are moving quickly, such as Canada, which recently announced a "productivity mega dedication" allowing businesses to immediately deduct the full cost of eligible capital investments.
Canada also makes mine development costs fully deductible the year they are incurred.
"That matters. It lowers the tax burden on new investment. It improves returns. And it gives companies greater confidence to commit capital," Mr McEwan said.
"That in turn creates jobs, incomes, and taxes for the nation."
Argentina and Chile, two other countries in which BHP was investing, had made similar moves, and Australia should pay close attention, the former NAB chief executive said.
He said BHP contributed $US50 billion ($A71 billion) to the world economy in 2025/26, including $US12 billion ($A17 billion) in taxes, royalties and other payments to governments.
The New Zealander began his address by noting the recent deaths of two workers, one at BHP's Peak Downs coking coal mine in Queensland and another at its Escondida copper mine in Chile.
"We are asking hard questions of ourselves and of the business. We owe that to the people affected, and to every person who comes to work across our operations each day," he said.
BHP chief executive Brandon Craig was on site at both mines within two days of the accidents and in each case BHP appointed a liaison worker to work with the contractor's family, Mr McEwan said.
In answer to a shareholder's question, Mr Craig defended BHP's continued use and purchase of diesel haul trucks rather than electrifying its fleet.
"If we could have electric trucks running efficiently and safely, we would love to have them there right today," he said, noting BHP spent about $1 billion on diesel.
"They are just not available."
BHP is testing a 220-tonne electric haul truck built by Caterpillar at its Jimblebar iron ore mine in the Pilbara, but it needed to be recharged for 30 minutes for every three hours it operated, Mr Craig said.
BHP runs its massive diesel trucks almost 24 hours a day.
"People are saying that these (electric) trucks work. Unfortunately, they don't, otherwise we would have them," he said.
BHP shares on Thursday afternoon were changing hands for $57.24, down 2.2 per cent from Wednesday's close.
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