Aussie LNG exporters to pay extra A$9bn as tax, royalty: Appea
Australia’s LNG exporters are set to almost triple their financial contribution to the public this financial year, forecasted to pay an extra A$9bn ($5.8bn) to federal and state governments, the country’s peak oil and gas body Appea said on October 3.
New preliminary forecasts, compiled by Appea, reveal the gas export sector is estimated to pay around A$13bn during 2022-23 – up from the A$4.8bn forecast for the last financial year.
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The total includes corporate income tax, the petroleum resource rent tax, state royalties and excise for companies who operate with December 30, 2022 financial years or June 30, 2023 financial years, Appea said.
Appea CEO Samantha McCulloch said the growing returns for the Australian public from exports were shown after the industry had invested over A$300bn in LNG projects since 2010.
“These forecasts demonstrate some of the direct financial value to the economy and the Australian public of long-term taxation settings that underpin these large, capital-intensive and complex projects,” she said.
“But focussing solely on revenue for determining the industry’s economic contribution ignores our far wider role – employing 165,000 people along the supply chain, building infrastructure, powering homes and businesses and facilitating growth – which has been estimated at enabling almost A$500bn of economic activity annually,” McCulloch added.
She said that the taxation profile of the LNG industry is evolving with changing economic conditions, including higher than forecasted prices.
“The industry is on a much faster track to make up the losses accumulated during the construction of these complex and capital-intensive projects, bringing forward timeframes for tax payments,” she said.
McCulloch said Australian gas exports were delivering huge economic benefits for Australians while helping the importing customers across Asia reduce their emissions.
Last week, the Australian government signed a new heads of agreement with the three east coast LNG exporters to ensure sufficient gas supplies for the domestic market.