The Federal Budget handed down tonight confirms Australia’s oil and gas industry continue to deliver strong returns for Australians.
The Budget revised forecast PRRT receipts upwards by $1.6 billion over the five years from 2025-26 to 2029-30, driven by higher-than-expected oil prices and higher production volumes.
Overall income tax receipts have also been revised up by $4.3 billion over the same period, with stronger commodity prices including LNG exports cited as a key contributor.
Australian Energy Producers Chief Executive Samantha McCulloch said the revised Budget estimates demonstrated Australia’s profit-based tax system including the Petroleum Resource Rent Tax (PRRT) is already working as intended.
“The Budget confirms Australia’s existing tax and royalty framework is delivering significant returns to the community while supporting reliable energy at home and energy security across our region,” Ms McCulloch said.
“The claims the industry is not paying its fair share, or that the tax system does not respond to higher prices, are demonstrably false.
“Higher oil and gas prices are already delivering substantially higher returns to governments through both the PRRT and company tax under the existing framework.”
The revised Budget forecasts are consistent with recent independent analysis by Wood Mackenzie, which found Australia’s oil and gas industry would deliver almost $160 billion in taxes and royalties to governments over the next five years if higher international prices persist under current settings.
“The Prime Minister has rightly acknowledged the strategic importance of Australia’s LNG exports to key trading partners and the important role they play in strengthening regional energy security and economic stability,” Ms McCulloch said.
Australia’s oil and gas industry was the nation’s second-largest corporate income taxpayer last financial year, contributing $21.9 billion in taxes and royalties.
Ms McCulloch also welcomed additional funding to support ongoing work to modernise offshore gas regulations to support gas investment and help mitigate supply shortfalls, including clarifying consultation requirements for offshore oil and gas approvals.