Greens and Pocock butt heads with energy giants at Perth gas tax inquiry
Executives of the country’s biggest fossil fuel companies came face to face with some of their biggest critics in federal politics as a Senate inquiry into the taxation of gas companies began in Perth on Friday morning.
The inquiry was frank but had tense moments, with Greens senators and independent senator David Pocock grilling Woodside and Chevron executives as well as Samantha McCulloch, chief executive of industry lobby group Australian Energy Producers.
The investigation comes against the backdrop of a campaign by Pocock and The Australia Institute calling on the Albanian government to impose a 25 per cent tax on gas exports due to concerns that the current tax, known as the Petroleum Resource Lease Tax, does not sufficiently repay Australians for their natural resources.
Both Woodside, Chevron and McCulloch echoed public comments that gas producers would push back on investment in the Australian sector at a time when a new tax calls for better energy security.
Chevron Australia’s chief financial officer, Maggie McCourt, said the company supported the PRRT because it encouraged the capital-intensive and risk-based nature of the gas industry.
“This is what started the industry and this is what will ensure continued investment in the future,” he said.
“Other types of taxes will discourage this type of investment going forward and could make it harder to compete not just for Chevron but for capital as well.”
Graham Tiver, Woodside’s chief financial officer, said his company was already a significant taxpayer, paying about 44 cents of every dollar of profit the company made when corporate taxes and royalties were taken into account.
“Across our combined portfolio, we have paid more than $22 billion into PRRT since its launch, including $471 million last year. In total, Woodside has paid approximately $2 billion in Australian taxes, royalties and fees. [2025] and approximately $13.8 billion in the last four years,” he said.
Tiver also reiterated comments his company made earlier this week that a 25 percent tax could kill the $30 billion Gözat project.
“In our middle case [price] “The scenario Browse works and achieves the required hurdle rates within Woodside’s investment framework,” he said.
“What we said at the beginning of the week and is still true today is that if a 25 percent gross tax is imposed on income, the economy will not improve.”
Inquiry chair and Greens Senator Steph Hodgins-May expressed her displeasure with the companies at the hearing over the absence of Woodside chief executive Liz Westcott and Chevron Australia chief executive Balaji Krishnamurthy.
Kynan Scarr, Chevron’s managing director of asset development, said McCourt was the company’s most senior finance and tax expert and could talk about future investments, given the investigation into taxation issues.
Companies’ political donations and lobbying efforts also came to the fore.
Hodgins-May probed both companies about whether they had tickets to Chancellor Jim Chalmers’ planned budget night dinner event next month and whether they had lobbied Chalmers, Prime Minister Anthony Albanese or Prime Minister Roger Cook over the 25 per cent gas tax.
These questions were taken into account.
Pocock asked them about lobbyist sponsorship passes, which allow lobbyists and companies to access Parliament House.
Both the companies and McCulloch said they have passes.
McCulloch said he had one but could not remember which MP sponsored him.
“Don’t you know?” Pocock asked.
“I have a great team setting this up for me, Senator,” he replied.
“I honestly couldn’t remember the process.”
Pocock’s hopes for a 25 per cent tax on gas companies’ income appear to have been dashed by reports that Albanese will not introduce it in his May budget.
The campaign, which is gaining momentum on social media, claims the Commonwealth could earn up to $17 billion a year by forcing multinational gas exporters to pay their “fair share” of the country’s limited resources.
However, Albanese, who choked one-fifth of the world’s crude oil supply due to the shock in oil prices and the closure of the Strait of Hormuz, launched a charm offensive against oil refining companies last week to ensure that Australia’s fuel supply was not affected.
He made commitments that LNG supplies to the same countries would not be affected.
WA Premier Roger Cook has harshly defended the gas sector and made clear he does not support the idea of a tax.
“I don’t think this will be good for Western Australia and I have made those views clear to the prime minister,” he said earlier this week.
“I understand that this kind of talk has a superficial appeal.
“If we are going to continue to attract the investment we need for these projects that deliver prosperity for decades, you have to make sure you provide a stable environment for these companies to be able to make these investment decisions.”
The investigation is scheduled to be reported next month.
Hamish Hastie is WAtoday’s state political correspondent and the winner of five WA Media Awards, including the 2023 Beck Award for best political journalism.Connect with: X or email.
