Media release: Australian gas industry’s $105 billion boost to the economy

New economic analysis by KPMG reaffirms the critical role of the Australian gas industry in powering the national economy, contributing $105 billion annually and supporting 215,000 jobs.

The ‘Economic Contribution of the Gas Industry’ report, commissioned by Australian Energy Producers, provides a snapshot of the gas industry’s economic contribution using the latest Australian Bureau of Statistics data.

The analysis shows the Australian gas industry is the most productive sector in Australia, delivering $2.8 million in value-add to the economy per full time equivalent (FTE) worker. It also found the sector contributes $85 billion directly to the economy annually, which represents 3.7 per cent of Australia’s Gross Domestic Product (GDP).

Australian Energy Producers Chief Executive Samantha McCulloch said the analysis underscored the importance of a strong Australian gas industry for a strong economy.

“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, spending billions with Australian businesses, and delivering significant state and federal government revenue through taxes and royalties,” Ms McCulloch said.

In addition to the estimated $17.1 billion paid in taxes and royalties to governments in 2023-‑24, the gas industry contributed $105 billion to Australia’s GDP and supported 215,000 ongoing jobs across the economy in 2021-22.

The analysis also modelled the flow-on economic returns from additional private sector investment in gas projects, finding that a 5 per cent increase in Australia’s gas production would boost the Australian economy by $10.5 billion and add 1,150 jobs.

“Supporting private sector investment in new gas projects is not only essential for our energy security, it also delivers significant economic benefits through the economy and a further uplift in Australia’s lagging productivity.

“With Australia facing gas shortfalls as soon as 2027 on the east coast, removing barriers to gas supply and encouraging investment in new gas projects should be a national priority,” Ms McCulloch said.

The analysis also found that the industry purchased $33 billion in goods and services from Australian businesses and paid $6 billion in employee salaries.

Read the KPMG report at energyproducers.au/economiccontribution

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