Advertisement
Does the gas cartel pay enough tax? You tell me. The following are ex-royalties which are not taxes. West Coast is below:
| Item | A$bn | % of Revenue | % of Profit* |
|---|---|---|---|
| LNG Export Revenue | ~56 | 100% | — |
| Estimated Profit* | ~17–22 | ~30–40% | 100% |
| PRRT (WA share est.) | ~0.5–1.0 | ~1–2% | ~3–5% |
| Company Tax (WA share est.) | ~2–4 | ~4–7% | ~10–20% |
| Total Tax (ex-royalties) | ~2.5–5.0 | ~5–9% | ~15–25% |
East Coast is below:
| Item | A$bn | % of Revenue | % of Profit* |
|---|---|---|---|
| LNG + Domestic Gas Revenue | ~40–45 | 100% | — |
| Estimated Profit* | ~12–16 | ~30–40% | 100% |
| PRRT (East share est.) | ~0.3–0.7 | ~1–2% | ~2–5% |
| Company Tax (East share est.) | ~3–5 | ~7–11% | ~20–30% |
| Total Tax (ex-royalties) | ~3.5–5.5 | ~8–13% | ~25–35% |
The PRRT distorts tax outcomes because it replaces royalties for western offshore gas and does not apply to eastern onshore gas.
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.