Japan set to collect more tax revenue from Australian gas than Australia will collect in PRRT

Japan set to collect more tax revenue from Australian gas than Australia will collect in PRRT

ITF BRIEFING PAPER 4
March 2017

Japan – the world’s biggest importer of LNG – is set to collect more tax revenue from Australian gas than Australia will collect in PRRT from all LNG production. Australia is on the verge of being the world’s biggest exporter of LNG. Over the next 4 years Australian will collect zero in PRRT revenue from the five new offshore LNG projects and no direct royalties are paid.

Submission to the Petroleum Resource Rent Tax Review

 Submission to the Petroleum Resource Rent Tax Review

TAX JUSTICE NETWORK

This submission will focus on the offshore gas projects which are only subject to the PRRT. The submission will briefly examine the promises of government revenues, outline the key failures of the PRRT system and propose a new royalty regime to ensure that Australians receive some benefit for their natural resources, and that the oil and gas industry competes on a level playing field. While further economic modelling is underway, we believe that this proposal could generate $4 to $6 billion over the forward estimate.

An International Comparison of Australian Government Revenues from Oil and Gas Production

An International Comparison of Australian Government Revenues from Oil and Gas Production

ITF PRRT BRIEFING PAPER 3
November 2016

Australia is already one of the top five LNG exporters, and set to overtake Qatar as the world's leading LNG exporter by 2021. However, it appears that Australians will miss out on the benefits of the boom, because its royalty regime has failed to keep up with global norms.

Comparison of Australia and Qatar LNG Exports and Revenues

Comparison of Australia and Qatar LNG Exports and Revenues

ITF PRRT BRIEFING PAPER 2
September 2016

By 2021, Australia's LNG export volumes are predicted to exceed those of Qatar, reaching 103.72 billion cubic metres (bcm) while Qatar's output falls to 101.7 bcm.

The Australian Government is expected to receive only AU $0.8 billion in PRRT revenues in 2019-20, or 1.97% of LNG export sales. At the same time, the Government of Qatar is forecast to collect AU $26.6 billion in royalties from LNG exports, equivalent to a share of 23.35%. 

Australian LNG Exports to Boom, Tax Revenue is a Bust

Australian LNG Exports to Boom, Tax Revenue is a Bust

ITF BRIEFING PAPER 1
October 2015

Despite the pending boom in liquefied natural gas (LNG) production and the forecast for Australia to be the largest LNG exporter in the world by 2020, the chief economist at Goldman Sach’s expects that “Australia’s LNG sector will deliver no additional PRRT revenues over the coming decade....” 

Chevron's Tax Schemes: Piping Profits out of Australia?

Chevron's Tax Schemes: Piping Profits out of Australia?

ITF & TAX JUSTICE NETWORK AUSTRALIA

As the world’s largest LNG project prepares to flow, billions of future tax revenues are at stake in Australia. Chevron’s complex business structure, involving subsidiaries in Bermuda, Singapore and Delaware,  facilitates aggressive tax avoidance in Australia.