Do beer drinkers pay more tax than gas companies? Yes, they do!

Independent Senator David Pocock recently asked Treasury officials whether beer excise raised more money than a key tax on the gas industry, Australia’s Petroleum Resource Rent Tax (PRRT). A video of the response – that yes, more money comes from beer excise than PRRT – has been widely viewed on social media and reported in mainstream media.

The gas industry lobby group Australian Energy Producers claims this is not a fair comparison, and has produced materials that compare beer excise with a range of gas industry payments, including company income tax.

This briefing note makes the point that if the income tax paid gas companies is considered, then it is necessary to include consideration of the income tax paid by beer drinkers.

If both income tax and the special taxes on gas and beer are considered, beer drinkers pay far more tax than mining companies.

Ultimately, the real point is that the PRRT is not raising significant revenue and needs urgent reform to ensure Australians receive a fair share for the sale of their resources.