Experts say Australia’s tax system is failing to deliver the benefits of the gas boom. 

An analysis of Australian government revenue from oil and gas shows that for over 30 years the share of industry revenue ending up as taxes has been steadily falling. 

In 1987-88 the government received 57 per cent of total oil and gas sector revenue. This has declined to just 7 per cent in recent years.

A major reason for the decline has been the changes in both the sector and the Petroleum Resource Rent Tax (PRRT) Assessment Act. 

In the early 1990s the industry was dominated by oil exports, however, in recent years LNG has made up over 80 per cent of total exports. 

Over this period as well, there have been multiple amendments to the PRRT that have resulted in many concessions and deductions.

When the PRRT was introduced it captured 19 per cent of total revenue; this has now dropped to just 1 per cent in 2019-20.

There has also been a dramatic decline in the proportion of corporate tax paid by the sector. In 1996-97, corporate tax for the industry peaked at 16 per cent of total sector revenue but that has dropped to just 2 per cent in recent years.

The research is accessible here.