LNG production is a major driver of the Australian economy

Gas is more than just energy for Australia

Natural gas has been a critical source of energy security in Australia since the 1960s.

It will continue to play a vital role as a much lower-emission alternative to coal for baseload power generation that will support the expansion of renewable energy. Gas is also a critical input for mining, resource processing, fertiliser production, and households.

Australian gas has made an enormous contribution to the regional energy landscape. LNG exports have provided energy security for Japan, South Korea, China, Taiwan and Singapore for many years. Over the next few decades, they will help fast-growing economies in South and Southeast Asia to transition away from coal.

And as the Australian Prime Minister has recently acknowledged, LNG exports underpin its strategic relationships in Asia, giving it access to other key supply chains.

A major source of government revenue

Organisations like The Australia Institute bombard social media with claims that Australian gas projects do not pay taxes or royalties.

They are wrong.

The Australian Government’s own data exposes the lies of the Australia Institute and others.

In October 2025, Australian Taxation Office (ATO) released data on the 2023-24 tax year.

To quote the ATO:

“…the total paid by the oil and gas sector for 2023–24 [is] $10.4 billion.”¹

This $10 billion represents around 10 percent of total company tax collections.

The gas industry itself publishes more up-to-date information on taxes paid in 2024-25, which encapsulates all payments to both federal and state governments.

Australian Energy Producers reports:

“The oil and gas industry is one of the biggest tax-paying sectors in Australia, contributing $21.9 billion in taxes and royalties in 2024–25 to state and federal governments.”

Individual companies paid substantial taxes, royalties and levies – Chevron Australia paid $5 billion² and Woodside paid $4 billion³ in 2024.

And as Australian Energy Producers has stated:

“Around 70% of gas produced in Australia is from Commonwealth waters where the Australian Government’s Petroleum Resources Rent Tax (PRRT) applies in place of a royalty regime, with Treasury estimating gas companies will pay $8.3 billion in PRRT over the next five years.”

The taxes, royalties and levies paid by the gas industry in the past year were equivalent to the annual cost of the Pharmaceutical Benefits Scheme – demonstrating the major contribution the industry makes to benefit all Australians.

Any increase in taxation would discourage the investment needed to grow domestic gas supply. 

Supporting jobs and economic activity

The Economic Contribution of the Australian Gas Industry report – undertaken by KPMG – outlines the highly significant contribution that gas production and LNG exports make to Australia’s prosperity.

Standout figures include:

• An overall contribution of $105 billion to the Australian economy, with a direct contribution of $85 billion
• 215,000 jobs supported across the economy, 30,000 of them directly within the gas industry
• $69 billion in LNG export revenue
• Gas providing 37% of energy used by Australian manufacturers and 18% of all electricity⁴