The report finds that despite $37 billion of liquified natural gas (LNG) being exported out of Darwin over the past four years, Australians received no royalties for this gas and no petroleum tax was paid.
Key Findings:
- Governments could have raised $3.36 billion in revenue if royalty arrangements from other Australian projects were applied to the NT gas export projects.
- Gas royalties are only paid on gas extracted and used in the Territory – just $2.6 million in 2023, equivalent to 0.04% of NT Government revenue.
- ³Ô¹ÏÍøÕ¾ gas exports over the last four years are estimated at $265 billion, $149 billion of which was royalty-free (at a cost of $13.3 billion in lost revenue).
- The gas industry pays little in federal tax – the combined tax payments of Chevron, Exxon, Woodside and Shell raise less money than beer excise.
- In the current skills shortage, new gas projects will divert jobs from other industries rather than create additional jobs.
“Gas companies have been ripping off Northern Territorians for too long,” said Mark Ogge, Principal Advisor at the Australia Institute.
“It is staggering that Northern Territory motorists contribute a whopping 32 times more revenue to the NT Government than the gas industry does. These corporations make tens of billions of dollars annually selling gas that is owned by the public.
“The gas industry is fond of talking up its economic importance, but the data tells a very different story. Our research shows that Territorians receive few benefits from the export of gas.
“If foreign-owned gas companies paid their fair share, the NT could have more teachers, health workers, schools, hospitals and renewable energy.
“Taxes and budgets are about choices, and the NT Government can choose to help the community, or it can choose to give foreign-owned gas corporations a free ride,” said Mark Ogge.
“The Chief Minister claims we must sacrifice our health in order for the gas industry to pay for our hospitals and schools. If the gas industry doesn’t pay their fair share of royalties or tax, how are they funding our hospitals and schools?” said Dr Louise Woodward, a Darwin-based paediatrician.
“Inpex is releasing dangerous amounts of toxic pollution into the air, increasing the burden of disease for the people of Darwin and Palmerston. We do not need an industry that pollutes with impunity, endangers our health, and doesn’t pay their way,” said Dr Woodward.
