The annual dump of data from the Tax Office landed yesterday, and once again, it exposes the pittance paid by the oil and gas industry. What’s the scam?
The scam is the Petroleum Resources Rent Tax (PRRT), which was introduced in 1988 to “ensure Australians benefit from the oil and gas that we collectively own,” but has been watered down to almost nothing.
According to The Australia Institute, the PRRT is poorly designed and full of loopholes that enable oil and gas companies to avoid paying much.
In the early years of its existence, the ATO would collect over 25% of oil and gas revenue as tax. Last year, it collected just under $1.5B from the well over $100B oil and gas revenue generated, less than 1.5%. (The PRRT is not levied on coal producers.)
| Company | Oil & Gas Revenue | PRRT Paid | % | |
|---|---|---|---|---|
| Woodside | $19.9B | $795m | 3.9% | |
| Santos | $8.2B | $213m | 2.3% | |
| Esso | $17.4B | $352m | 2% | |
| Other (7 companies) | $122m |
The fossil fuel industry at large will, of course, be quick to tell us how much tax and royalties they paid in total, $21.9B in FY2023-24, while conveniently ‘forgetting’ the fossil fuel industry received around $14B in various government subsidies that same year.
Meanwhile, in Norway, another country rich in oil and gas, the Government collects close to 40% of fossil fuel industry revenue as tax and royalties.
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Kim Wingerei is a businessman turned writer and commentator. He is passionate about free speech, human rights, democracy and the politics of change. Originally from Norway, Kim has lived in Australia for 30 years. Author of ‘Why Democracy is Broken – A Blueprint for Change’.