Australia’s state and federal governments appear to have won a windfall as oil and gas companies are set to pay $16 billion (US$10.7 billion) in tax.
This comes just weeks before Federal Treasurer Jim Chalmers delivers federal Labor’s second budget.
Corporate income tax is set to boost the budget by $8.8 billion, up from $2 billion the previous financial year. Royalties, excise and licence fees will increase to $5 billion from $2.7 billion, while other taxes will add $652 million.
But despite gas companies being among the biggest taxpayers in the country, Samantha McCulloch, who is chief executive of the Australian Petroleum Production and Exploration Association (APPEA), said compounding regulatory interventions—including the possibility of lifting or altering the petroleum resource rent tax—risks future investment, energy security and future revenue….