Oil and gas lobby fights claims the sector pays no tax with Australian Energy Producers projecting $17bn bill

Oil and gas businesses will pay more than $17 billion in tax this financial year, an analysis by the industry lobby projects. The number comes amid heated debate about the sector’s contribution to the national coffers, including a Senate inquiry into the Petroleum Resources Rent Tax. Australian Energy Producers said tax paid by the lobby group’s members would be up 5.3 per cent this financial year, according to a survey. About $12.8 billion was generated through company tax — more than 9 per cent of Australia’s total tax take from businesses — while the PRRT collected $1.2b. AEP chief executive Samantha McCulloch said the full bill would cover healthcare costs for more than 1.7 million Australians. “The survey also showed the industry will spend over $41b on Australian goods and services this financial year, supporting local jobs, businesses and communities,” she said. The West Australian revealed last year that 10 big businesses with key links to WA paid a whopping $30 billion in tax in the 2022 financial year, according to Federal Treasury data. The gas sector received a boost last week with the Commonwealth pivoting to back in the fuel’s use beyond 2050 in “all credible net zero scenarios”. “The (Future Gas Strategy) put beyond doubt that gas is essential to Australia’s energy transformation and investment in new gas supply is needed to ensure Australian households and businesses, and our trade partners, continue to have reliable and affordable energy,” Ms McCulloch said. Resources companies have been under the blowtorch over tax payments, with the PRRT a prime example. There are huge lags in PRRT bills as companies recoup their upfront investment costs for projects — after chipping in about $250b to build 10 LNG plants across the country. LNG export revenue was $74bn in 2023, according to EnergyQuest — but company tax is paid on profit. Chevron’s Australian business is among the largest producers in the country and provides a good guide, earning $6.8bn of profit in 2023.