Tax and Commercial
The oil and gas industry has been operating in Australia for more than five decades. It’s estimated that during this period, the industry has paid more than $250 billion – in today’s dollars – to governments through resources charges and company tax.
APPEA seeks a petroleum taxation system that encourages investment in oil and gas while also ensuring that the Australian community receives an appropriate return for the use of its resources.
The tax take includes company income tax, resource taxes and indirect taxes (such as tariff and excise duties). Governments must ensure that the burden of the overall tax take does not discourage investments in what would otherwise be commercially viable projects.
APPEA’s 2017-18 Financial Survey – the 31st instalment of the survey outlining the financial performance of the sector – showed the Australian oil and gas industry’s major tax, rents and royalty contributions of around $5.8 billion.
Rebounding from a record operating loss of $7.6 billion in 2016-17, the 2017-18 survey showed the industry recorded an overall profit of $6.88 billion. The result was driven by an increase in oil and gas sales revenue of approximately 61 per cent to $54.3 billion in 2017-18 on the back of higher production volumes and improvements in the petroleum price.
Over the past decade, the industry has made more than $77 billion in payments to governments with $149 billion contributed since 1985. We’re clearly paying our fair share of taxation.
The Financial Survey results can be found here.