The global expansion in liquefied natural gas (LNG) export projects raises questions about the real contribution of this activity to the host country’s economic growth. In the case of Australia, positive economic outcomes are expected from A$200 billion invested in LNG infrastructure. Seven large plants for LNG export are coming online or under construction in Australia, with some production having commenced. Thus the stage has been set in the community for an expectation of significant amounts of taxes to be raised from these large projects.While Australia has welcomed new business investment of $200 billion for integrated gas projects, lower than expected receipts for government have raised concerns about the effectiveness of petroleum taxation in Australia. The petroleum resource rent tax (PRRT) revenue take since the 2002-03 financial year has fallen, which pressured the Australian Government to call for a review of the PRRT in late 2016. In phase one of this research project the question asked is: If Australia’s petroleum taxation regime for integrated natural gas-to-liquids (GTL) projects were to be modified to generate higher government revenue, what might be the economic outcomes? In the next phase, the research will pose questions about industry responses to oil price shocks and how Australia’s gas extraction industry compares to that of the US. Phase one findings from the selected case study of Chevron’s Gorgon gas project include the need for the addition of royalties to the existing tax regime for particular integrated natural gas projects in Commonwealth waters. The results are discussed in the context of resources providing an equitable return to the Australian community. This paper is significant for its unique overview of Australia’s petroleum taxation since the dramatic fall in prices from mid-2014 and the rise of gas projects for LNG export. This interdisciplinary and empirical research forms an important contribution to the current commonwealth PRRT Review through its discussion of a changes to provisions in the Petroleum Resource Rent Tax Assessment Act 1987 (Cth).
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