ITF BRIEFING PAPER 4
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.
Japan has long been the primary buyer of Australian LNG. The Reserve Bank of Australia estimates that despite diversification of Australia’s LNG trading partners, Japanese demand will continue to account for 45% of all Australian LNG exports under contract by 2020.
In the same period, the Australian Government is not expected to collect any PRRT from the set of new LNG projects that together will make Australia the world’s biggest exporter of LNG.