The Australian oil and gas industry is set to deliver a record $21.9 billion in taxes and royalties to federal, state, and territory governments in the 2024-25 financial year, underscoring its vital and ongoing contribution to the Australian economy.
This figure marks an increase from $21.5 billion paid in 2023-24, according to the latest financial survey by Australian Energy Producers.
The payments encompass company income tax, Petroleum Resource Rent Tax (PRRT), state royalties, and excise duties.
The breakdown includes $13.48 billion in company tax, $1.35 billion in PRRT, $6.62 billion in royalties, excise, and fees, and $492 million in other taxes.
Australian Energy Producers Chief Executive Samantha McCulloch highlighted the significance of this contribution, stating: “The oil and gas industry remains the second-highest corporate taxpayer in Australia, accounting for one in every ten company tax dollars paid.”
She emphasised the broader importance of this revenue, stating: “$22 billion in tax revenue helps fund essential services for all Australians and is equivalent to the total annual cost of the Pharmaceutical Benefits Scheme.”
Beyond its substantial fiscal contributions, the oil and gas sector plays a key role in Australia’s economic productivity and growth.
The sector represents 3.7 per cent of Australia’s Gross Domestic Product (GDP) and has been responsible for nearly $60 billion in tax and royalty payments over the past three years.
An economic analysis by KPMG cited in the survey reveals the sector as Australia’s most productive, with each worker generating $2.8 million in gross value-added in 2021-22, which is 16 times the Australian average.
McCulloch further pointed out the industry’s broader economic impact, stating: “As well as having a critical role in Australia’s energy mix, natural gas is powering the Australian economy through high levels of employment and productivity, contributing $105 billion a year to the national economy and supporting 215,000 jobs.”
She also stressed the importance of stable fiscal and regulatory frameworks for the industry’s future.
“For an industry characterised by long lead times, high upfront costs, and intense international competition for capital, sound and stable tax and regulatory settings are essential to provide investors and operators with confidence to invest in large-scale projects that can span several decades,” McCulloch said.
Taxes and royalties paid by the Australian oil and gas industry (in millions AUD):
| Category | 2023-24 Actual | 2024-25 Forecast |
|---|---|---|
| Company tax | 12,992 | 13,484 |
| Petroleum Resource Rent Tax (PRRT) | 1,425 | 1,347 |
| Royalties, excise & fees | 6,530 | 6,620 |
| All other taxes | 591 | 492 |
| Total | 21,538 | 21,943 |
(Source: Australian Energy Producers financial survey 2025)
This record tax and royalty payment highlights the Australian oil and gas industry’s critical financial role in supporting government revenues and public services, alongside its economic and employment contributions nationwide.