Polls Reveal Public Support for Tax Reform
A new report reveals that a majority of Australians support increasing taxes on the profits of large fossil fuel corporations, amid revelations of low tax contributions by these companies. This comes as Australians deal with rising energy bills and climate-related costs.
The report from Oxfam Australia and Make Big Polluters Pay shows that one in three large fossil fuel companies paid no tax in Australia during the 2023-24 financial year, despite generating a combined income of $436 billion. For example, Santos paid no corporate income tax over a decade, despite making over $46 billion in total income.
Despite these substantial earnings, the sector contributed just 5% in corporate income tax, a stark contrast to what everyday Australians pay. Meanwhile, Australians continue to face increasing energy bills alongside rising costs from climate disasters like floods and bushfires.
The report, titled 'Freeloaders', highlights that oil and gas companies alone reported $116 billion in income but paid only $5.2 billion in corporate income tax. In comparison, Peabody’s Australian subsidiary paid no corporate income tax for nine years while generating over $35 billion in revenue.
Public Opinion and Corporate Responsibility
Polling conducted by Oxfam found that 60% of Australians support increasing taxes on the profits of large oil and gas corporations to fund a transition to renewable energy. This sentiment spans across political lines, with 59% supporting increased investment in renewable energy, compared to only 29% who back more fossil fuel extraction.
Jennifer Tierney, Oxfam Australia Chief Executive, stated, "It is fundamentally unfair that some coal, oil and gas corporations are making billions from Australia’s resources and paying little to no corporate income tax, while everyday Australians face rising energy bills, food costs, insurance premiums and climate disaster recovery costs."
The report suggests the introduction of a 25% levy on gas exports and recommends ending subsidies for fossil fuel corporations to ensure these companies contribute fairly to the economy.
Australians are already bearing significant climate change costs, with damages from natural disasters estimated at $38 billion annually, averaging about $3,800 per household. The report advocates for the establishment of a Climate Compensation Fund to help communities recover from these disasters.
In addition, the Ichthys LNG Project, partly owned by INPEX and TotalEnergies, paid no corporate income tax from 2018-19 to 2023-24, despite generating $43 billion in income. These examples underline the broader imbalance in the sector, where extraordinary private rewards are paired with comparatively limited public contributions.
