Energy expended on tax dodge
Five of Australia’s biggest energy and gas companies have paid no income tax for at least the past seven years.
Data published by the Australian Tax Office (ATO) shows that despite a combined income of $138 billion, four of the five members of the Australian Petroleum Production & Exploration Association (APPEA) (Arrow Energy, Australia-Pacific LNG, Chevron and ExxonMobil) have not paid any income tax for years, resulting in all profits heading offshore to foreign owners.
In a 2012, APPEA claimed Queensland coal seam gas LNG companies would have paid around $11.2 billion in federal income tax by 2020. They have paid almost none.
In 2015, Chevron estimated it would have paid around $4 billion in “direct taxations and royalties” by 2020. It has paid no income tax or resource tax over that period.
In 2013, Shell claimed that its Prelude floating LNG project would pay $12 billion in taxes over the life of the project. Shell has since acknowledged it will never pay PRRT has paid no income tax since 2015.
Australian company Santos paid just $6 million income tax on $28.9 billion of income, and paid no income tax from 2015 to 2018 and 2020.
Experts say that a thorough overhaul of taxation of the oil and gas industry in Australia is long overdue.