The oil and gas industry has been operating in Australia for more than five decades. It’s estimated during this period, the industry has paid more than $250 billion – in today’s dollars – to governments through royalties and company tax.
Large-scale capital intensive projects like those undertaken in the oil and gas industry, mining, infrastructure and construction require large upfront capital expenditure and long-term investment confidence. APPEA seeks a fiscal regime that is stable and internationally competitive.
Such a regime would support Australia’s attractiveness as an investment destination. It will encourage investment in vital projects critical to Australia’s energy security and technologies that are critical to accelerating towards a net zero economy. An appropriately-designed regime will also deliver strong returns to the Australian community for the use of its non-renewable resources without discouraging investment in what would otherwise be commercially viable projects that would also deliver support jobs, spending on Australian goods and services, new energy supply and an acceleration to net zero.
The industry contributes directly to state and federal government revenues through a combination of overlapping fiscal payments – this includes corporate income tax, state and territory royalties, petroleum resource rent tax, excise duties and licence fees.
APPEA’s 2020-21 Financial Survey showed the Australian oil and gas industry’s major tax, rents and royalty contributions of around $5.2 billion.
Australia’s LNG exporters are expected to almost triple their financial contribution in 2022-23, estimated to pay almost $14 billion to state and federal governments to help fund services like hospitals, schools and roads.
Taxation is only one of the many ways the oil and gas industry contributes to the Australian economy with more than 160,000 jobs and 46,800 business supported throughout the gas industry supply chain.