Courtesy of Australian Energy Producers
28.07.2025
The Australian oil and gas industry is expected to pay a record $21.9 billion in taxes and royalties to federal, state and territory governments in 2024-25, reaffirming the industry’s substantial and ongoing contribution to the Australian economy.
Australian Energy Producers’ latest financial survey reveals that Australian oil and gas companies are forecast to pay $21.9 billion in taxes and royalties in 2024-25, up from $21.5 billion in 2023-24. The payments include company income tax, Petroleum Resource Rent Tax (PRRT), state royalties and excise.
Australian Energy Producers Chief Executive Samantha McCulloch said the results represented the highest annual tax contribution from the industry to date and dispelled the myth that Australia’s oil and gas sector does not pay its fair share.
“The oil and gas industry remains the second-highest corporate taxpayer in Australia, accounting for one in every ten company tax dollars paid,” Ms McCulloch said.
“$22 billion in tax revenue helps fund essential services for all Australians and is equivalent to the total annual cost of the Pharmaceutical Benefits Scheme.”
In addition to the oil and gas industry’s significant tax and royalties contribution, which total almost $60 billion over the past three years, the sector is a key driver of Australia’s productivity and economic growth, representing 3.7 per cent of Australia’s GDP.
Economic analysis by KPMG found that the oil and gas industry is the most productive in Australia, with each worker producing $2.8 million of gross value-added in 2021-22 (16 times the Australian average).
“As well as having a critical role in Australia’s energy mix, natural gas is powering the Australian economy through high levels of employment and productivity, contributing $105 billion a year to the national economy and supporting 215,000 jobs.
“For an industry characterised by long lead times, high upfront costs, and intense international competition for capital, sound and stable tax and regulatory settings are essential to provide investors and operators with confidence to invest in large-scale projects that can span several decades,” Ms McCulloch said.
Taxes and royalties paid by the Australian oil and gas industry
