Majority of Offshore Gas Projects Paid ZERO Royalties
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- Опубліковано 21 вер 2024
- "The Australian public thinks the gas industry should be paying for the gas.
"We can keep doing dumb things if we want to.
"But if this Government wants to have more money for schools, more money for hospitals...there is a simple tax reform opportunity here."
- Executive Director Richard Denniss on ABC The Business
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This is outrageous and is basically condoned theft from the Australian People. An independent inquiry is warranted.
No, an enquiry is not needed, just immediate royalties payments collected.
@@synthcluband make it retrospective
How much is going to the EU through American ships?
The gas Platform in Bass Straight cost 4.8 billion Dollars and the American company is expecting to make 6.2 Trillions out of that gas! 🥴
Keep calling this out. Also tell us average day Aussies what can we do to change this extortion of what we should get entitled to! Who and how do we vote to enforce changes! Thank you again Aus Institute for calling this out!
It's almost like successive Australian Governments have been supporting and enabling businesses instead of its peoples.
Thank god we have the Aus institute fighting for us.
If the gas companies are getting the gas for free , why are we consumers paying so much ? , that the big question.
We are a democracy, but we are ko not a soverein nation! Owned by America!
It’s time the government changed the rules.
We have missed out on billions and billions of dollars over decades
Naaaa only since the Gillard government
And she was owned by Hillary Clinton
Time we changed the 2 party government
Keep the pressure on the government.
Need to ditch ALP/LNP if we have a chance of removing these thieves
Corruption, corruption as far as the eye can see.
its not pressure by gas industry its favors (post retirement benefits) and kickbacks
This has to be shared on every platform as you know the gas industry & the politicians would like this hidden from public view.
Please investigate the tax these companies are paying! Please link so we can see how upstanding these leading companies really are. Another thing to link to the story is the clean up after a well is depleted, including both onshore and off shore.
The Australian people getting ripped off, brought to you by Labor and the LNP.
The Morrison government is to blame.
@@ateoforever7434 Actually this has been going on for over 40 years.
When can Australia get a government with a spine, where else are these companies going to get the gas, our take is shameful.
Yes please!!!!!!!!!!!!!!
These gas companies laugh all the way to the bank - and Australians get taken for fools.
Hooray for The Australia Institute!!! Yes, government is to blame, especially some particular government officials. By the way, what is the definition of a traitor to this country???? Or what should it be?
Matt Ferguson resource minister at the time. He now sits pretty on the board of one of these criminal capitalists.
This needs to change ASAP. Australia could be a rich country with the best infrastructure in the world with little to no income tax for its citizens if the country was run properly by the government. Successive governments have been and are just so incompetent .
OUR gas should FREE to Australians
Norway has a USD 1.6 trillion dollar (1,600 BILLION) wealth fund for all Norwegians by collecting royalties from oil and gas companies. Here we just seem to let them take it with no royalties collected.....
Royalties should close to 90% on everything. If they don't like. tell them to get out the of the country.
Golf Whitlam tried that, then got sacked by the Crown. Not surprising considering the Queen was majority shareholder of Rio Tinto,and the Americans had a lot to lose as well.
We have 2000 unnecessary lobbyists walking the halls of parliament!
Always taking the most and contributing the least, thank you for shedding light on their greedy practices
SO? When will we get action on this? Or will it all fare away as usual and same as all other royalties we are sll dudded from? On tjis alone politicians should be kicked out!
So who’s taking the piss out of who - unlucky Australian citizens - the oil corporations have lobbied & paid off the politicians & politicians wonder why trust in Gov’t is deteriorating -
Both of the big parties Must be held accountable! Give ONE NATION a chance 🙏
Just a coincidence that pollies all end up in high salary gas positions 😅😅😅😅😅😅😅😅😅😅
No dividends paid to our citizens either
Absolutely criminal
Our government is a disgrace to the Australian people allowing this to happen , get your act together !!!
Aussies need to hear this!
Where ia our Ministers answering this Question
It's left to Greens, independents and teals.
Stop all subsidies to these companies that’s our tax money!
( Gas corporations )....." if you charge us taxes we leave ".....Then go ! we get nothing from you anyway.
"Further, thanks to a change in legislation regarding the Petroleum Resources Rent Tax (PRRT), which covers LNG exports, Australia now receives less in PRRT payments than it did 20 years ago even though petroleum export revenues have soared by more than $50 billion.
Labor’s minister for resources Martin Ferguson presided over a number of the legislative changes which allowed gas extractors to avoid tax before he retired from politics and became a fossil fuel lobbyist. Ferguson is one of many former politicians in the fossil fuels lobby."
Thanks "Michael West Media" ( Fossil Fuel Fiesta: Australia’s coal and gas giants get more in subsidies than they pay in royalties, by Callum Foote | May 26, 2021 ) and thanks "Punters Politics" for pointing it out.
and thank you Martin Ferguson for that generous kick in the pants.
TAX! TAX! TAX!,,,there aint no free lunch on the Australian peoples dime. WHO IS RESPONSIBLE FOR THIS double dealing and how are they getting quietly compensated so the commonwealth neglects to collect the correct royalties on behalf of the Australian people. WHO ARE THESE SCOUNDRELS digging up our commons and profiting direct, who have they corrupted with pennies so they can plunder billions
THE YANKS
There are several former politicians now working in the resources industry. Not hard to imagine why they were given cushy retirement positions after parliament.
Martin Ferguson the ex resources minister for labor
The Anglo Americans control our mineral resources and foreign policy. Say no more.
What about "The Business" they might be partly to blame for not alerting the Australian people to this in the past . They have been supposedly reporting on business operations in Australia for years and have never identified this problem. It never occurred to them to look at how much tax was being paid by the gas industry?
Well done excellent report.
I found some of her questions to be kinda naive and a bit odd, but it gave Richard the opportunity to explain the situation even further to drive the point home. Great interview and thanks for the public advocacy.
You think they are naive - she is just reading nonsense that bosses are putting on the teleprompter.
You'd think ABC would go to ground on this, yet they're just sweeping the money leaving Australia issue under the carpet.
Lets see if the ABC follows up with pressure on our politicians
What is wrong with our political parties? Are they up for sale???
Ummmmm YEP !!!
It is called Money Laundering.
So what's the risk of deterring gas investment or industry if we don't get substantial benefit from it anyway?
Are they giving it away for free to the buyers?
Richard Denniss speaks too much sense. The entire country suffers of stockholm syndrome. Every time a government tries to tax or stop a resource project, an army of ordinary peasants (I mean taxpayers) is ready to fight to defend the oil & gas and mining industries as if their life depends on them
if we collected the same as Norway that would be $70 Billion over last 4 years.
we could have free tertiary education again if we collected these taxes.
How manay schools hospitals and defence could we pay for how much reduced taxes could we have.
As this gets bigger, I hope that I witness the Liberals turn on this issue, and the ALP are left looking like the outsiders. Just to demonstrate how close we are to a uniparty country
Or will they both continue to stand up for the industry that has been so generous to their political campaigns in the past
There could be no better outcome than both parties to defend the system that clearly is NOT in the best interests of Australians
I will vote for anyone else
People need to stop voting for the 2 major parties.
I wish he hadn't brought up the climate change argument. Right-wing voters will tune out immediately. Instead, he should have brought up the fact that gas companies also threatened to leave Norway when its government proposed a tax increase, and yet they stayed even once the tax increase had been implemented.
Instead of taking money out of education to prop up healthcare (and vice-versa on rotation), we could be getting the money to fund both at the same time. These resources belong to the Australian people, not the government. Why does the government get to set the price well below what every other country in the world sells its resources for? It's criminal.
If we're not getting a fair price for our gas, then leave it in the ground. It's not worth it to us Australians to have it dug up for free, processed offshore, and sold back to us at an absolute premium.
Because the British and American corporations own us. Our politicians,like our service personnel, still swear allegiance to the British Crown, who are joined at the hip with the American corporations, forming an informal, quasi empire. Wall Street and the City of London are mirror images of each other, who invest and profit from instability and conflict.
Bet the politicians got their royalties
Whats really going on here? Who signed the deals?
If this doesn't change we wont look like fools. We will be fools.
A resources rich nation struggling to pay our rent.
It`s amazing it takes a you tuber about Dumb Aussies to to get Media involved
1 word corruption
Why is it that our current crop of politicians are incapable of working in the interests of the nation. The lobbyists should all be excluded from an open Royal Commission. Current media should be banded from reporting with all disclosures and discussions published independently. Vice Chancellors from key universities should frame the inquiry.
I’m confused how the gas price cap implemented by the Albanese government works?
Is the government paying the gas industry not to hike wholesale prices in Australia?
If so, how much does it cost?
Seems like a short term “tweak” to a long term issue.
Peter Dutton be like, yeah more gas!
Australia still a colony
The whole thing needs to fall into a line similar to normal onshore mining, pay the royalty rate .... the business, plant, equipment, exploration, capital costs etc to be deprecated and claimed same as other mining.
So you might say, "well the CAPEX is $5billion" ..... yeah so. Once built + commissioned and extraction/processing are made the royalty tax is due and paid. Even if you write down/off all expenses and break even, no tax payable as zero profit, the royalty tax still would have been paid ..... the royalty is not dependent on the profitability of the business any different to the PAYG of the workers wages.
On the expenses sheet before company tax on profit you deduct PAYG tax, you deduct Royalty Tax already paid, simples.
What's wrong with changing it to that? You could also put at tax as the % of the average piece sold X amount sold, or have staggered like QLD did to coal.
The PRRT looks like junk frankly and exploited. 2022 to 2023fy PRRT tax collected was only $2.28 billion.
The east will dump Australia soon enough. We missed the boat and made gina and ziggy rich.
Health and Education spending is always increasing. We need a new city! How can Western Australia only have Perth? Not enough water ? Lake Argyle is huge.
Yes spending increases to offset the erosion of inflation. It often goes backwards in real terms despite increasing in net terms.
Disgusting.......
Our cost of living is rising rapidly because the price we pay for goods and services is being driven upwards by the aggressive taxation levelled upon it by all three levels of government in this country. These goods and services include fuel, energy, utilities, food, clothing, council and commercial rates etc. So when we purchase goods and services the price we pay includes all these taxes which are also continually rising.
So why are they so high? The answer to this question is that we, the citizens of this country, are almost entirely the sole source of taxation revenue for the three levels of government in this country. Because each year, big business, including many who are foreign, pay little to nothing in tax amounting to hundreds of billions of dollars lost to the nation, meaning you and I have to make up the difference.
“Australians are paying more personal income tax as a share of government revenue than any other advanced economy, except for the high-taxing Scandinavian welfare state of Denmark, according to an international report that renews pressure on the Coalition and Labor to reform the tax system.
Governments in Australia also raised almost double the amount of revenue from taxes on property compared to other wealthy nations, chiefly due to state-based stamp duty on real estate purchases, the Organisation for Economic Co-operation and Development report said.”
- AFR(policy-tax-and-super-personal-tax-take-second-highest-in-oecd-20211206-p59f3y)
“A report for the Organisation for Economic Co-operation and Development found that as a share of government revenue, our personal income taxes account for 42 per cent, which is more than twice as much as the OECD average of 23.5 per cent.”
- ABC(news-2021-12-07-personal-income-tax-in-australia-amongst-the-13666488)
The data below comes from the ABS and shows just how big the problem of tax avoidance by big business is in this country.
Total tax collected from individuals by all levels of government in 2020-2021 was $593,184 million or $593.184 billion as shown by the ABS (abs-ausstats-abs@.nsf-mf-5506.0)
Total tax payable by Corporate Australia in 2020-2021 was $68,895,227,402 or $68.895 billion as can be found at - Data(dataset-ds-dga-c2524c87-cea4-4636-acac-599a82048a26-details).
That means we citizens contributed $524.289 billion dollars in taxes while big business was liable for only $68.895 billion dollars. This represents, 68.895/(524.289 + 68.895) x 100% = 11.614% of the total tax expected to be collected by the federal government was paid by big business.
According to the ABS the total income of big business in this period was $2,311,484,379,849 or $2311.5 billion or $2.3115 trillion and so in being liable for only $68.895 billion in tax they only paid 2.98% of their income in tax.
If big business paid the same rate of tax as the rest of us, say 30%, then the total tax take from big business in 2020-21 should amount to $693.45 billion. Even if they were only expected to pay 20% of their income in tax then they would be liable for $462.3 billion. If we set the bar at 15% then they would be liable for $346.73 billion.
Such a sum would make an enormous difference to reducing the taxation burden on workers and small businesses from all three levels of government and hence to significantly reducing the cost of living pressures we are currently experiencing.
What about our schools, universities, hospitals, defence and other expenses we must meet? No wonder the cost of living has got out of hand in this country as the tax burden of big business has been transferred onto the shoulders of the community and so by its very weight crushing the economic life out of it.
Around one third of big businesses don’t pay any tax, “One-third of large companies in Australia still don’t pay any tax despite a taxation office crackdown on the big end of town that has been under way for five years.”
- Theguardian-(australia-news-2021-dec-10-one-third-of-big-businesses-in-australia-still-dont-pay-any-tax-five-years-into-ato-crackdown)
Some of these businesses even receive handouts or subsidies from the government.
“Fossil fuel subsidies cost Australians a staggering $10.3 billion in FY 2020-21 with one Commonwealth tax break alone ($7.84 billion) exceeding the $7.82 billion spent on the Australian Army, according to research released today by The Australia Institute.
In fact, $10.3 billion in Government subsidies means that in 2020, every minute of every day $19,686 was effectively given to coal, oil and gas companies and major users of fossil fuels……………………………………………..
…….. “Coal, oil and gas companies in Australia give the impression that they are major contributors to the Australian economy, but our research shows that they are major recipients of government funds,” said Rod Campbell, Research Director at The Australia Institute.“
- Australiainstitute-(australian-fossil-fuel-subsidies-hit-10-3-billion-in-2020-21)
The tax evasion behaviour described above has been going on for decades under both Labor and the LNP. In this kind of environment, where permissive thinking undermines integrity leading to such behaviour being normalised, we should not be surprised to discover individual politicians who have been spying against us on behalf of foreign governments.
Vote for independents next time.
Vote LibLabLast!
Lol. Didn’t see the Libs trying to change it.
I pay more tax than Exxon Mobil. How does that work?
This reeks of corruption
They will pay for Albos wedding. 😂😂😂😂😂😂😂😂
Disgraceful
How else do you inflate gas costs for Aussies? $$$$
SOLUTION ? WHEN ?
Doesn't the gas pay off the infrastructure first ?
You can vote for the neoliberal right or you can vote for the neoliberal left! “The Lobby country” sorry i meant the lucky country my bad
TAX REFIRM NOW!
The Australian Government should ensure the gas industry pays their fair share by imposing royalties on all gas extracted in Australia.
Add your name to the petition: nb.australiainstitute.org.au/collect_gas_royalties
This persons voice sound like she’s introducing a new story every time she asks question.
Shut them down or Nationalise them
🦞Seismic blasting did have a impact on rock lobsters back in the early 2000s fisherman had big quota cuts millions gone and hundreds of job Bass strait Victoria already had the backside blasted out of it 🐬🐢🐙🐳🐠🦑🦀
Look at India and China with net zero ha ha ha!
I know you guys go after the click bait issues, but the entire Australia Institute can’t be this poorly read. As economists, you’d know the $10-$50B offshore gas projects offset their royalties on the losses the project makes while in construction. Once they make back the project cost (which is massive because these are huge complex projects), they pay royalties. While in construction, they are still paying payroll tax and they will be employing thousands of people. After payback, you get royalties and corporate tax. PRRT is a bit different to most state mining royalties - for mining royalties the standard arrangement is to pay them monthly from the first shipment even when making an operating loss. This sort of PR campaign from you guys is either negligent or dishonest.
You sound like youre on the oil and gas payroll. Bottom line is if we can't get net benefits leave the gas where it is. I bet the extraction industry doesn't walk away.
Last year the GAS industries made a 130 Billion profit, multiplied by 10 years past....equals 1 + trillion $$$$$$$ and " they " winge about costs to set up ?????
You do get net benefits. You get jobs and sell materials, then you get workers spending money and sell materials for maintenance (and get corporate and payroll tax). Then once the initial project is paid off, you get royalties.
Not sure why an unsighted profit number from one year gets multiplied by 10.
It’s the same deceit the Australia Institute uses on the fuel tax credit scheme saying it is a subsidy to the mining industry when they damn well know it isn’t. Easily the most dishonest think tank in the country
To put it nicely...you are full of sh. Shell, the operator of Australia’s largest-ever gas project, Gorgon, said that they never expects to pay PRRT on the project. They are so arrogant that they literally told ATO to fu off and leave them alone
so why has it taken this long for richard tell us that