Australian Energy Producers welcomes the majority of the Select Senate Committee on the Taxation of Gas Resources’ rejection of reckless calls for higher taxes on Australia’s oil and gas industry.
Chief Executive Samantha McCulloch said the inquiry’s outcome reaffirmed that Australia’s existing tax and royalty framework is already delivering significant returns to the community while supporting investment, jobs and reliable energy supply.
“The facts are that Australia’s oil and gas industry is the second-highest corporate taxpayer in the country, contributing $21.9 billion last year alone,” Ms McCulloch said.
“The outcome of the inquiry sends an important signal that Australia must remain internationally competitive if we want continued investment in new gas supply and long-term energy security.”
Ms McCulloch said the report also came at a time of growing recognition of the critical role Australian LNG trade plays in securing Australia’s liquid fuel supply and supporting energy security across the region.
“The Prime Minister has rightly acknowledged the strategic importance of Australia’s LNG exports to key trading partners, and the role they play in strengthening regional energy security and economic stability,” she said.
“Australia has built a strong reputation as a trusted and reliable LNG supplier over decades and maintaining that reputation is critical not only for our trading relationships, but also for Australia’s broader economic and fuel security interests.”
Wood Mackenzie analysis presented to the inquiry showed an additional 25% tax on gas exports would result in an effective tax rate of more than 80% for some companies, rendering Australia uninvestable and putting our long-term energy security at risk.
Ms McCulloch said the inquiry also highlighted the considerable misinformation and misleading claims being pushed by groups calling for higher taxes on the gas industry, and welcomed the Coalition Senators’ report calling out the misinformation and anti-gas agenda driving the campaign for higher taxes.
“The inquiry shone a light on the fact this campaign is not about tax reform. It’s about using taxes to stop investment in new oil and gas projects, which is a recipe for higher energy prices, job losses, and gas shortages. The committee was right to reject it.”
