Australian Oil and Gas Industry sector is set to deliver a record A$21.94 billion (US$14.46 billion) in tax and royalty payments to federal, state, and territory governments in the 2024–2025 financial year, according to new data released by Australian Energy Producers (AEP). This figure marks the industry’s highest-ever annual contribution to government coffers, surpassing the previous year’s A$21.53 billion. The payments include a combination of company income tax, Petroleum Resource Rent Tax (PRRT), excise, and state royalties.
Samantha McCulloch, Chief Executive of AEP, emphasized the significance of the financial impact, noting that these figures decisively counter perceptions that the industry does not contribute its fair share to the national economy. “The oil and gas industry remains the second-highest corporate taxpayer in Australia, accounting for one in every ten company tax dollars paid,” she said.
Economic Engine with High Productivity and Job Creation
Beyond its fiscal contributions, the oil and gas sector continues to serve as a major engine of productivity and employment across the nation. According to economic research by KPMG, the Australian Oil and Gas Industry is the most productive in Australia, with each employee generating A$2.8 million in gross value-added output in 2021–2022—approximately 16 times the national average. The sector contributes an estimated A$105 billion annually to the national economy and supports 215,000 jobs, underlining its role in powering both energy supply and economic performance.
Representing 3.7% of Australia’s Gross Domestic Product (GDP), the sector’s sustained influence reinforces its central role in Australia’s broader economic framework. McCulloch also highlighted natural gas as a pillar of the country’s energy mix, ensuring both domestic supply and continued export value.
Call for Stability to Ensure Long-Term Investment
Given the long-term nature of oil and gas projects, McCulloch stressed the importance of policy consistency and regulatory stability to maintain investor confidence. “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,” she stated.
Over the past three years, the Australian Oil and Gas Industry combined tax and royalty payments have totaled nearly A$60 billion, reaffirming its long-term value to both government budgets and economic development. Industry leaders continue to advocate for a conducive investment climate that supports sustainable growth and ensures Australia remains a competitive destination for global capital in the energy sector.
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