A new economic analysis by KPMG has highlighted the substantial impact of the Australian gas industry on the national economy.

The report, commissioned by Australian Energy Producers, reveals that the industry contributes $105 billion annually and supports 215,000 jobs across the country.

The Economic Contribution of the Gas Industry report, based on the latest Australian Bureau of Statistics data, showcases the gas sector as the most productive in Australia.

It delivers an impressive $2.8 million in value-add to the economy per full-time equivalent worker.

The analysis found that the gas industry directly contributes $85 billion to the economy annually, representing 3.7 per cent of Australia’s Gross Domestic Product (GDP).

This significant contribution underscores the sector’s critical role in powering the national economy.

Australian Energy Producers Chief Executive Samantha McCulloch emphasised the importance of a strong gas industry for economic growth.

“Natural gas is powering the Australian economy through high levels of employment and productivity, spending billions with Australian businesses, and delivering significant state and federal government revenue through taxes and royalties,” she stated.

Key findings from the report include:

• The gas industry paid an estimated $17.1 billion in taxes and royalties to governments in 2023-24.
• A 5 per cent increase in Australia’s gas production could boost the economy by $10.5 billion and add 1,150 jobs.
• The industry purchased $33 billion in goods and services from Australian businesses.
• $6 billion was paid in employee salaries.

McCulloch also highlighted the importance of supporting private sector investment in new gas projects, not only for energy security but also for significant economic benefits and productivity improvements.

With potential gas shortfalls predicted as early as 2027 on the east coast, the report suggests that removing barriers to gas supply and encouraging investment in new projects should be a national priority.

This comprehensive analysis reaffirms the gas industry’s vital role in Australia’s economic landscape, demonstrating its far-reaching impact on employment, productivity, and overall economic growth.