Taxes paid and benefits to the Australian economy

MYTH

Woodside doesn’t pay taxes or royalties and doesn’t contribute to the Australian economy.

FACT

Woodside's projects have a history of direct economic and tax contributions supporting the prosperity of communities and governments. This record runs through the commodity price cycle and across generations.

• Woodside is the largest payer of PRRT and Australia's fifth-largest taxpayer in 2022–23.¹
• Since the PRRT has applied, Woodside has paid more than A$20 billion across its merged portfolio to 2024.²
• In addition, the Woodside-operated North West Shelf (NWS) Project has paid more than A$40 billion in Australian royalties and excise (from start of production to 2024) (100% venture).³
• In 2024 alone, Woodside paid A$4.1 billion in Australian taxes, royalties and levies to the Western Australian and Australian governments. That followed a record $A5 billion in 2023. In just those two years, Woodside's contribution is equivalent to the Australian Government's 2025 Budget provisions for Medicare bulk billing (A$7.9 billion) and the response effort to recover from Ex-Tropical Cyclone Alfred and other disasters (A$1.2 billion).⁴ 
• Also in 2024, Woodside paid A$62 million to state governments in payroll taxes, bringing its total payment of payroll taxes to A$676 million since 2013.

Since 2011 Woodside has paid more than A$22 billion in Australian taxes, royalties and levies.⁵ In this same period, Woodside also paid wages to Australian employees which have generated more than A$4 billion in pay as you go (PAYG) withholding⁶ – money which goes back into communities, towns and cities all over Australia.

Woodside still contributes when profits are affected by downturns, such as during the COVID-19 pandemic years. Its Australian tax and royalty payments in 2020 were A$707 million⁷ against a pre-tax loss of approximately A$7.7 billion.

Governments and communities benefit beyond the direct taxes Woodside pays. Recent highlights include the following.

• Spending approximately A$6.26 billion on goods and services with Australian suppliers in 2023.⁸
• Donating A$1.125 million to Telethon, supporting 107 organisations, charities and good causes delivering life-changing programs, purchasing equipment and funding of medical research into childhood diseases.
• Committing A$50 million towards the Resources Community Investment Initiative.
• Contributing A$22 million towards training thousands of Western Australian apprentices for the future through the Construction Industry Training Fund.
• Contributing A$2.5 million in philanthropic corporate donations and small grants in host communities.

To learn more about Woodside's social contribution – totaling A$33.3 million in 2023 – you can read the 2023 report here.

The taxes Woodside pays

As a large Australian company, Woodside's taxable profits are subject to corporate income tax in Australia at 30%. However, a company’s effective income tax rate will not necessarily be 30% of its reported profit. This is due to differences between tax laws (which govern the calculation of taxable profits) and accounting standards (which govern the calculation of reported profit). In 2024 Woodside’s effective income tax rate on its reported Australian profits was 26.9%. Further details are contained in Woodside’s 2024 Annual Report.

Since the PRRT has applied, Woodside has paid more than A$20 billion across its merged portfolio.⁹ Furthermore, the Woodside-operated NWS Project had paid more than A$40 billion in Australian royalties and excise since starting production (100% venture)¹⁰, of which Western Australia has received A$18 billion under its revenue sharing arrangements.

Like the NWS Project before it, economic activity generated by Woodside's Scarborough Energy Project is expected to boost Australia’s economy by many billions of dollars. This includes the payment of more than A$50 billion in direct and indirect Australian taxes over the project lifecycle by Woodside, its Joint Venture participants and companies working on the project.¹¹

^{1 Based on information from the Australian Taxation Office website here and here.}

^{2 Includes data relevant to the assets acquired through the merger with BHP’s petroleum business, both before and from 1 June 2022.}

^{3 Based on amounts collected by the Australian Government in federal budget papers from 1984 to 2024 and other records.}

^{4 budget.gov.au/content/overview/download/budget-overview.pdf.}

5 Includes data relevant to the assets acquired through the merger with BHP’s petroleum business, both before and from 1 June 2022. Denotes cash tax paid to 30 June 2024. 

^{6 Includes data relevant to the assets acquired through the merger with BHP’s petroleum business, both before and from 1 June 2022. Denotes PAYG withheld to 31 December 2024.}

^{7 www.woodside.com/sustainability/governance/corporate-governance.}

^{8 Converted from US$4.16 billion using the 2023 average AUD/USD exchange rate of $0.6645.}

^{9 Includes data relevant to the assets acquired through the merger with BHP’s petroleum business, both before and from 1 June 2022.}

^{10 Based on amounts collected by the Australian Government in Commonwealth Budget papers from 1984 to 2023 and other records.}

^{11 www.woodside.com/docs/default-source/our-business---documents-and-files/scarborough/economic-impact-of-the-scarborough-energy-project_summary-brochure.pdf}