Question regarding expected revenue flows from the Gorgon LNG project over various timeframes and tax categories. The answer provides some estimates and defers detailed figures until the project is better defined, noting that some revenue streams are Commonwealth matters.

AnsweredQoN 539Legislative Assembly
Asked
1 December 2005
Portfolio
State Development

QuestionView source ↗

(b) over a 25 year period, what is the expected revenue flow for each form of revenue collection, including - (i) resource rent tax; (ii) company tax; (iii) payroll tax; (iv) local rates; and (v) other; and (c) for resource rent tax, what is the expected revenue to be collected over the first 5, 10 and 15 years of the project?
(ii) company tax; (iii) payroll tax; (iv) local rates; and (v) other; and
(iii) payroll tax; (iv) local rates; and (v) other; and
(iv) local rates; and (v) other; and
(v) other; and
· an estimated $17 billion in company tax and Petroleum Resources Rent Tax (PRRT) to the Commonwealth government over the life of the 10 million tonnes per annum LNG project; · $4 billion increase to Western Australia's economic welfare; and · local rates payable to local government. An enhanced understanding of revenue flows will be obtained once the Project is better defined during 2006, and before State approvals are granted. (b) (i) Commonwealth government issue; (ii) Commonwealth government issue; (iii) There will be a modest increase in payroll tax in relation to additional employees; (iv)& (v) The State Agreement does not exempt the Joint Venturers from any taxes, rates or licence fees that would be associated with a resource development project in Western Australia. (c) Commonwealth government issue.
· $4 billion increase to Western Australia's economic welfare; and · local rates payable to local government. An enhanced understanding of revenue flows will be obtained once the Project is better defined during 2006, and before State approvals are granted. (b) (i) Commonwealth government issue; (ii) Commonwealth government issue; (iii) There will be a modest increase in payroll tax in relation to additional employees; (iv)& (v) The State Agreement does not exempt the Joint Venturers from any taxes, rates or licence fees that would be associated with a resource development project in Western Australia. (c) Commonwealth government issue.
· local rates payable to local government. An enhanced understanding of revenue flows will be obtained once the Project is better defined during 2006, and before State approvals are granted. (b) (i) Commonwealth government issue; (ii) Commonwealth government issue; (iii) There will be a modest increase in payroll tax in relation to additional employees; (iv)& (v) The State Agreement does not exempt the Joint Venturers from any taxes, rates or licence fees that would be associated with a resource development project in Western Australia. (c) Commonwealth government issue.
An enhanced understanding of revenue flows will be obtained once the Project is better defined during 2006, and before State approvals are granted. (b) (i) Commonwealth government issue; (ii) Commonwealth government issue; (iii) There will be a modest increase in payroll tax in relation to additional employees; (iv)& (v) The State Agreement does not exempt the Joint Venturers from any taxes, rates or licence fees that would be associated with a resource development project in Western Australia. (c) Commonwealth government issue.
(b) (i) Commonwealth government issue; (ii) Commonwealth government issue; (iii) There will be a modest increase in payroll tax in relation to additional employees; (iv)& (v) The State Agreement does not exempt the Joint Venturers from any taxes, rates or licence fees that would be associated with a resource development project in Western Australia. (c) Commonwealth government issue.
(ii) Commonwealth government issue; (iii) There will be a modest increase in payroll tax in relation to additional employees; (iv)& (v) The State Agreement does not exempt the Joint Venturers from any taxes, rates or licence fees that would be associated with a resource development project in Western Australia. (c) Commonwealth government issue.
(iii) There will be a modest increase in payroll tax in relation to additional employees; (iv)& (v) The State Agreement does not exempt the Joint Venturers from any taxes, rates or licence fees that would be associated with a resource development project in Western Australia. (c) Commonwealth government issue.
(iv)& (v) The State Agreement does not exempt the Joint Venturers from any taxes, rates or licence fees that would be associated with a resource development project in Western Australia. (c) Commonwealth government issue.
(c) Commonwealth government issue.

AnswerView source ↗

Answered
3 January 2006
Responded by
Minister for State Development
Response time
33 days
(a) The Gorgon Joint Venture's pre-engineering and design estimate for the initial project development capital expenditure is some $11 billion. The Joint Venture is now further defining the Project costs during its engineering and design phase, which will review the capital expenditure and operating costs for a Final Investment Decision to be made in late 2006. Preliminary information of the economic situation based on the pre-engineering and design estimates can be found in Chapter 15 and Technical Appendix F1 of the
Draft Environmental Impact Statement/Environmental Review and Management Programme for the Gorgon Development
. These documents detail estimates of economic benefits which include:
· an estimated $17 billion in company tax and Petroleum Resources Rent Tax (PRRT) to the Commonwealth government over the life of the 10 million tonnes per annum LNG project;
· $4 billion increase to Western Australia's economic welfare; and
· local rates payable to local government.
An enhanced understanding of revenue flows will be obtained once the Project is better defined during 2006, and before State approvals are granted.
(b) (i) Commonwealth government issue;
(ii) Commonwealth government issue;
(iii) There will be a modest increase in payroll tax in relation to additional employees;
(iv)& (v) The State Agreement does not exempt the Joint Venturers from any taxes, rates or licence fees that would be associated with a resource development project in Western Australia.
(c) Commonwealth government issue.

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