Key Points:

• New research shows 2/3 Australians support a windfall profits tax, with only 12% opposed (attached)
• Western Australians (71%) are the most likely to support the introduction of a windfall profits tax followed by Queensland residents (69%).
• Origin revenue has more than doubled on the strength of commodity prices, cash distribution from Australia Pacific LNG was $1,595 million for the financial year.
• Origin reported a $4.4 billion uplift of in assets associated with the hedging of high wholesale electricity and gas prices
• Australia Pacific LNG revenue FY2022 revenue increased 103 per cent, driven by higher spot LNG and realised oil prices.
• Research shows APLNG (a joint venture operated by Origin) paid $0 in income tax from 2014-2020 despite making $25,098,444,961.00 in income. This was also not subject to Petroleum Resources Rent Tax (PRRT)

Quotes attributable to Australia Institute Chief Economist Dr. Richard Denniss:

“Today’s enormous profit by Origin makes clear that while Australian households and businesses are suffering from high energy prices, companies like Origin are making a fortune.

“That’s why we need a windfall profits tax: energy companies have done nothing to earn these record profits, they are literally cashing in on the crisis caused by Russia’s war in Ukraine.

“A windfall profits tax could be used to offset the cost to the budget of helping low-and-middle-income earners in Australia cope with the soaring prices that are delivering eye-watering profits for companies like Origin.

“A windfall profits tax is economically smart and politically popular. Our research shows that even before Origin posted these huge profits 2/3 Australians supported a windfall profits tax, with only 12% opposed.

“The Queensland LNG export projects including Origin’s APLNG project are the reason for our exposure to global prices. The exorbitant gas prices being paid by Australian customers as a result are flowing directly to Origin as windfall profits,” said Australia Institute Chief Economist Dr. Richard Denniss.

The Australia Institute recently hosted Nobel prize winning economist Joseph Stiglitz in Australia, where he backed the credentials of a windfall profits tax, along with former Treasury Secretary Ken Henry.