Australia’s gas industry tax debate: proposed 25% export levy vs. industry warnings of investment risks
Consensus Summary
Australia’s Senate inquiry into gas taxation has pitted politicians advocating a 25% export levy against energy giants warning of investment risks. Key facts include Shell’s $109 million PRRT payment in 2025 after a decade of zero payments, despite $6.2 billion in after-tax profits, and Santos exporting $47 billion worth of gas while paying no corporate tax. Industry executives like Shell’s Cecile Wake called proposed taxes 'spectacularly ill-advised,' citing potential $400 billion investment losses and comparisons to the UK’s post-levy investment decline. Tax advocates like CICTAR and former Treasury secretary Ken Henry countered that Australia’s current system delivers far less revenue than global peers, with critics like David Pocock framing the debate as a choice between 'Australians ahead of gas companies.' The inquiry highlighted structural tax avoidance, with Santos using subsidiaries in tax havens and Shell contributing $1 million to a lobbying campaign against reforms. While consensus exists on the financial disparities, contradictions persist over total tax figures, with Shell’s broader $12 billion tax claim including state and payroll components not always clarified.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Shell Australia paid $109 million in PRRT in 2025 but zero PRRT from 2015–2024, with $6.2 billion after-tax profits in 2024
- Santos exported $47 billion worth of Australian gas over a decade and paid zero corporate income tax in 2023–24 despite $8 billion revenue
- The proposed 25% gas export levy was described as 'spectacularly ill-advised' by Shell Australia chair Cecile Wake, who warned it would deter investment
- Shell contributed $1 million to the Australian Energy Producers’ anti-tax campaign, with other major producers contributing similar amounts
- The Senate inquiry into gas taxation occurred on April 22, 2026, with hearings led by Greens senators David Pocock and Steph Hodgins-May
- The Centre for International Corporate Tax Accountability and Research (CICTAR) cited the Ichthys LNG project generating $43 billion revenue since 2018 but paying zero corporate tax in Australia
- The Queensland Resources Council warned a federal export levy would create 'punitive double taxation' alongside state royalties
Points of Difference
Details reported by only one source:
- CICTAR proposed a 'net back only' PRRT pricing method could raise up to $90 billion over existing projects' lifetimes
- Tax Justice Network noted half of the industry’s $21.9 billion tax payments in 2025 came from just Chevron and Woodside
- Origin Energy’s Australia Pacific LNG project only began paying federal corporate tax in 2024 after a decade of deductions
- Shell invested $US60 billion ($A85 billion) in Australia since 2010 and paid $12 billion in taxes over the past decade
- David Pocock questioned why Santos operated 12 subsidiaries in tax havens (British Virgin Islands, Cayman Islands, Netherlands)
- Greens senator Sarah Hanson-Young compared gas companies to bakers not paying for flour, asking 'Why is it that a baker has to pay for his flour but the gas industry doesn’t have to pay for the gas?'
- Former Shell executive Idris Jala argued Australia should tax gas windfall profits, dismissing investor scare tactics
- Shell cited UK’s 'energy profits levy' led to a 14.1 billion pounds/year investment drop to 2.3 billion pounds/year by 2025–2029
- Former Treasury secretary Ken Henry urged Australia to 'just do it' on gas taxation reforms in the national interest
- Konrad Benjamin (Punters Politics) claimed Australians were 'giving most of it away for free' to foreign corporations
- The Superpower Institute’s Beathan Mullen said Australia takes 18% of gas tax vs. global norms of 75%+
- Western Australian Premier Roger Cook publicly opposed a gas export tax, calling it 'not good for WA'
Contradictions
Conflicting information between sources:
- Article 1 states Shell paid $12 billion in taxes over the past decade, while Article 2 says Shell paid $12 billion in taxes over the past decade but Article 3 clarifies Shell’s $12 billion figure includes state taxes and payroll tax, not just federal PRRT
- Article 1 claims Santos paid zero corporate tax in 2023–24 despite $8 billion revenue, while Article 2 does not dispute this but adds Pocock’s broader critique of Santos’ $47 billion exports over a decade with zero tax
- Article 1 says Shell’s $21.9 billion tax figure includes broader sector payments, while Article 3 implies this figure may be inflated by state taxes and payroll tax rather than federal PRRT
- Article 2 states Shell’s $2.9 billion tax was on $6.2 billion after-tax profits in 2024, but Article 1 does not provide this specific 2024 profit figure
- Article 1 mentions Santos’ subsidiaries in tax havens may 'artificially shift profits offshore,' while Article 2 does not address this structural claim directly
Source Articles
Energy giants push back on tax calls
A fierce Senate showdown has exposed the deep divide over how much Australia earns from its booming gas exports.
Shell boss stumped by Pocock’s question
A gas industry boss warned against “punitive” new taxes while defending one company that exported $47 billion worth of Australian gas without paying corporate tax.
'Spectacularly ill-advised': Energy giants condemn gas tax
An inquiry into the taxation of gas resources has heard from proponents for a tax, who believe Australians are being robbed of their fair share of wealth from the nation's natural resources, and opponents, who argue touching tax settings would spook investors.