Australia’s oil and gas industry is set to deliver $16.26 billion to state and federal governments this financial year, nearly triple that of the $6.46 billion last financial year.
The total includes corporate income tax, the Petroleum Resource Rent Tax (PRRT), state royalties and excise for companies operating with 30 December 2022 or 30 June 2023 financial years.
Taxation receipts for this single year could fund construction of around 11 new public hospitals or 160 new schools, or cover annual healthcare for about 1.6 million Australians.
APPEA Chief Executive Samantha McCulloch said: “The oil and gas industry is delivering substantially bigger returns for Australians and this $16 billion will help governments funds policies like disability support and paid parental leave as well as important infrastructure like roads, schools and hospitals.
“Gas companies are among the biggest taxpayers in Australia yet face compounding regulatory interventions that risk energy security, investment and future revenue streams to governments.
“The PRRT is delivering growing returns to taxpayers alongside other payments the industry makes in royalties, corporate income tax and other fees.
“But it’s important to remember direct payments are only one part of the industry’s broad economic contribution – enabling almost $500 billion economic activity annually, supporting 80,000 jobs, providing essential energy to millions of homes and businesses, including major sectors like manufacturing and transport, and facilitating economic growth.
“For example, APPEA’s Financial Survey has found the industry’s estimated direct spending on Australian goods and services would grow to $45 billion this financial year, up from $29.9 billion previously.”
APPEA members who export alongside producing domestic supply are forecast to contribute over $15 billion to governments this financial year, up from $5.67 billion in the previous financial year.
McCulloch said: “Our industry invested over $300 billion in LNG projects between 2010 and 2020 and the return on that investment is clear to see.
“With changing economic conditions, including higher than forecasted prices, the taxation profile of the LNG industry is changing and the sector is on a faster path to make up the losses accumulated during construction, bringing forward timeframes for tax payments.
“This further shows how the tax system – with long-term settings encouraging investment in major multibillion dollar, high-risk nation-building projects – is working, stimulating investment, job creation and delivering for Australians.”
