Australia’s LNG exporters will pay an extra $5.8bn in taxes to federal and state governments to help fund schools, hospitals and roads, the Australian Petroleum Production and Exploration Association (APPEA) announced.
According to the preliminary predictions by the APPEA, the gas export sector would pay roughly $8bn during 2022-23, up from $3bn predicted for the previous fiscal year.
The total comprises corporate income tax, the petroleum resource rent tax (PRRT), state royalties, and excise for businesses with fiscal years ending on 31 December 2022 or 30 June 2023.
Corporate income tax jumped from around $1bn to $5.6bn, PRRT from $708m to $1.02bn, royalties from $1.01bn to $1.57bn, and excise from $283m to $727m.
Samantha McCulloch, Chief Executive of the APPEA, said: “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.
Changing economies, like fluctuating prices and foreign currency exchange rates, could affect the forecasted figures.
The industry has invested over $193bn in LNG projects since 2010, showing increasing returns for the Australian public from exports, according to APPEA.
The industry’s economic contribution could employ around 165,000 people along the supply chain.
“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,” McCulloch said.
Last fiscal year, Australia’s gas exporters delivered an estimated $45bn in LNG, which is $25bn more than the year before. Chevron and Shell are the major stakeholders in Australian gas exports, each controlling more than 15% of the capacity of the country’s LNG plants, which are expected to generate $54bn this fiscal year.