AU oil and gas sector boosts gov’t revenues to record high

Australia’s oil and gas industry is poised to make a significant contribution to federal, state, and territory government coffers this fiscal year, surpassing expectations with over $17 billion in taxation revenue.

According to the latest financial survey conducted by Australian Energy Producers, the industry is projected to contribute $17.1 billion in taxes in the 2023-24 fiscal year, marking a 5.3% increase from the previous year’s $16.3 billion.

These payments encompass various taxes, including company income tax, Petroleum Resource Rent Tax (PRRT), state royalties, and excise.

Australian Energy Producers Chief Executive Samantha McCulloch emphasised the significance of this financial windfall, noting its role in financing essential services and infrastructure nationwide.

“The latest survey results represent the highest revenue contribution to date, helping governments fund essential services and infrastructure like roads, schools, and hospitals,” stated McCulloch.

She further highlighted the sector’s substantial contribution to the local economy, with the industry projected to spend over $41 billion on Australian goods and services in the current fiscal year, supporting local employment, businesses, and communities.

McCulloch underscored how these findings reaffirm the importance of the Future Gas Strategy in recognising the critical role of gas in Australia’s energy security and economic prosperity.

“The 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,” she asserted.

McCulloch concluded by stressing the role of gas in shaping Australia’s energy landscape for the foreseeable future, advocating for a national energy policy that reflects its centrality in driving economic growth and sustainability beyond 2050.

“A Future Made in Australia is not possible without gas, and our national energy policy should reflect the central role gas will play in the Australian economy to 2050 and beyond,” she noted.