Nurses pay more tax than the oil and gas companies
Over the 10 years to 2023-24 nurses paid $7bn more in tax than did the oil and gas companies.
The oil and gas industry loves to tell everyone they pay a lot of tax, but the evidence tells a very different story.
The oil and gas industry claim their tax pays for nurses and other public sector services, but new Australia Institute research shows that nurses pay more in income tax than the oil and gas industry pay in company tax and Petroleum Resource Rent Tax (PRRT).
Over the last 10 years, Australia’s nurses have paid $52 billion, or an average of $5.2 billion per year, in tax.
By contrast, the oil and gas industry, who can’t stop talking about how much tax they pay, has paid $45 billion or on average $4.5 billion per year.
It’s worth noting that almost all of the oil and gas industry’s payments have occurred in the last two years, since Russia invaded Ukraine and pushed energy prices to record levels.
While official ATO figures haven’t been released yet, the oil and gas lobby group Australian Energy Producers claims that its members paid $11.1 billion in 2022-23 and $13.9 billion in 2023-24. These lobby group figures are included in the above chart. If assessing the average annual tax payment of the oil and gas industry based on only ATO figures, that exclude the Russia war-linked windfalls, then the average is $2.8 billion per year over the ten years to 2020-21.
The oil and gas industry exports more than 80% of Australia’s gas, gets most of the gas it exports for free, is a small employer and pays little tax. In fact, it turns out the oil and gas industry has never paid the Petroleum Resource Trent Tax (PRRT) on the gas it exports from Australia. Its huge profits flow overseas to mainly foreign owners. Australians are largely missing out from the benefits of our own gas.
The resource sector may claim that it is funding schools and hospitals, but in reality, the gas industry makes little contribution compared to ordinary Australian workers like nurses, teachers and retail workers,
Australia needs to start making the gas industry pay royalties for the gas it exports and pay more resources tax (PRRT) to ensure that Australians are getting their fair share from the oil and gas industry.
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