Australian oil and gas giants pay extra $9billion in tax

Australian gas and oil exporters will be forced to cough up an additional $9 billion in taxes after a damning report recently revealed that five major industry players had failed to pay income taxes in the past seven years.

Multinational giants will nearly triple their financial contributions to federal and state governments this fiscal year after years of sending huge profits abroad using perfectly legal accounting methods.

The gas export sector is expected to bring in an estimated $13.87 billion in 2022-23 — up from $4.8 billion last fiscal year, according to forecasts from the Australian Petroleum Production & Exploration Association (APPEA).

More than half ($7 billion) will go to corporate taxes, along with an additional $500 million in petroleum rental taxes, $860 million in state royalties and $690 million in excise taxes.

APPEA has emphasized that ultimate earnings will be subject to changing economic conditions, including fluctuating foreign currency prices and exchange rates.

The additional taxes and royalties will help fund public roads, schools and hospitals.

“These forecasts show some of the immediate financial value to the economy and the Australian public of the long-term tax situations underlying these large, capital-intensive and complex projects,” said APPEA chief executive Samantha McCulloch.

“The load profile of the LNG industry is evolving with changing economic conditions, including higher than forecast prices.

“The industry is moving much faster to make up for the losses incurred in the construction of these complex and capital-intensive projects, pushing forward tax payment timelines.”

She added that gas exporters delivered huge economic benefits for Australians, while helping customers across Asia reduce emissions.

“The federal government estimates that Australia’s LNG has the potential to reduce emissions in importing countries by about 166 million tonnes of carbon dioxide per year by helping them switch from higher-emission fuels – this is equivalent to about a third of Australia’s annual emissions,” Ms McCulloch said.

Australian gas and oil exporters are projected to cough up an additional $9 billion to federal and state governments, much of it in corporate taxes

The extra tax and royalties from gas and oil exporters will go to schools, roads and hospitals (pictured, a drilling rig for coal seam gas reserves in Queensland)

The news comes as the former boss of the competition watchdog called on multinational oil and gas companies to share massive windfalls from rising prices that have fueled supply disruptions caused by the conflict between Russia and Ukraine.

Former ACCC chairman Rod Sims believes the oil and gas sector has “made huge revenues with very few employment opportunities,” compared to other sectors.

“It’s really unhealthy for society when companies make huge profits while others in society have to pay the same high prices,” he said. Nine Newspapers.

“With prices as high as they are, I think it’s very unlikely that people would think that a fair share of the revenue is going to the Australian public from these projects. It has to be looked at now.’

The Australia Institute revealed earlier this year that five energy giants have paid no income tax in the past seven years, despite generating a combined profit of $138 billion. Pictured: Santos LNG Plant Darwin

“These are huge projects that they’re dealing with, so of course the dollars will be big — but it’s the tax rate that’s key and how much return they get, especially in this day and age where they’re making very large amounts of money.”

The Australia Institute revealed earlier this year that five energy giants – Chevron, ExxonMobil, Arrow Energy and Australia-Pacific LNG and Senex – have paid no income tax in the past seven years, despite generating a combined profit of $138 billion.

It led to a call for Prime Minister Anthony Albanese to impose “much stricter supervision” on the companies that impose huge price hikes on customers despite paying little or no tax.

“It’s unbelievable that you can make $138 billion and pay nothing in taxes. Our governments should not allow this to happen and we need a review of the way the oil and gas industry is taxed in Australia,” said Mark Ogge, Australia Institute chief adviser earlier this year.

Prime Minister Anthony Albanese urged to impose ‘much greater scrutiny’ on multinational giants who pay little or no tax

“The gas companies promised us billions in revenue and instead we have little in our pocket and much more impact on the climate.

“We trust our politicians to tax our natural resources for the benefit of all Australians, but instead some of the biggest miners, members of APPEA, pay nothing at all.”

APPEA had estimated the association’s members would pay about $11 billion in taxes by 2020 — and said the gas and oil exploration would bring significant revenue to Australia.

Instead, the energy giants paid no taxes – while Australian company Santos paid only $6 million in income tax of $28.9 billion.