Australia’s energy security receives a significant boost with new gas exploration acreage, highlighted by a recent report from the Australian Taxation Office (ATO). The report reveals that the oil and gas sector remains one of the largest contributors to the nation’s corporate tax revenue, contributing $10.4 billion in company tax for the fiscal year 2023-24.
Chief Executive of Australian Energy Producers, Samantha McCulloch, noted that these figures indicate the oil and gas sector accounts for roughly one in ten dollars of total company tax paid in Australia. “The ATO’s results are consistent with Australian Energy Producers’ recent member survey that found the sector is forecast to pay $21.9 billion in taxes and royalties to state and federal governments in 2024-25, representing the highest annual tax contribution from the industry to date,” McCulloch stated.
She emphasized that the ATO’s findings challenge the perception that the oil and gas sector does not contribute fairly to the economy. “The fact is that the oil and gas sector is Australia’s second largest corporate taxpayer, which helps pay for essential services and infrastructure for all Australians,” McCulloch added.
The ATO also highlighted that Australia boasts some of the highest levels of tax compliance among large businesses globally. Notably, the resources sector, which encompasses oil and gas, has paid more tax than all other sectors combined for three consecutive years. This underscores the critical role of the oil and gas industry in supporting the nation’s economic stability.
Economic Impact and Job Creation
McCulloch further elaborated on the economic implications of these contributions. “In addition to the oil and gas industry’s significant tax and royalties contribution, which total approximately $55 billion over the past three years, the sector is a key driver of Australia’s productivity and economic growth, contributing $105 billion a year to the national economy and supporting 215,000 jobs around Australia,” she explained.
This substantial economic footprint highlights the importance of the oil and gas sector not only as a source of revenue but also as a vital component in maintaining energy security and fostering job opportunities within the country.
As Australia continues to explore new gas resources, the energy sector is poised to play an increasingly pivotal role in the nation’s overall economic landscape, ensuring both energy reliability and financial contributions that benefit all Australians.
