Originally published by Joe Spagnolo of The West Australian
25.04.2026
WA’s peak resources body has emphasised the importance of not shackling the sector with new taxes ahead of a meeting with Prime Minister Anthony Albanese in Perth this week.
The Chamber of Minerals and Energy WA has back-to-back breakfasts with Premier Roger Cook and the Prime Minister on Tuesday and Wednesday, during which both leaders are expected to reveal more detail about their respective Budgets.
CME boss Aaron Morey said keeping the sector operating throughout the current fuel crisis was the best way to protect the nation, economically.
He warned a new tax on gas exports would have a devastating effect on the $166 billion engine room of the economy.
Mr Morey highlighted the record economic contribution made by its membership base, which includes mining and energy giants BHP, Rio Tinto, Hancock Iron Ore, Woodside, Chevron and Mineral Resources.
“The WA resources sector injected $166 billion into the national economy last year — the equivalent of $454 million flowing across the country every single day,” Mr Morey said.
“That includes $71 million in daily wages into the pockets of direct workers, $278 million in daily payments to local businesses and community organisations, and $106m each and every day in taxes and royalties to State and Federal governments.”
He said WA had been a prime beneficiary of the economic success of the sector, with WA Treasurer Rita Saffioti set to announce the Labor Government’s eighth consecutive multi-billion dollar surplus since winning power in 2017.
“Over the past seven years, since the onset of the COVID pandemic, royalties and Northwest Shelf Grant payments have delivered nearly $20 billion in windfall revenue over and above Treasury’s forecasts,” Mr Morey said.
“And overall royalties and North West Shelf Grant payments in that period are on track to total close to $79b, providing an extraordinary dividend to the people of WA and the infrastructure and services they rely on.
“That is enough to pay for the WA Government’s entire $64b Asset Investment Program over the past seven years — every train line, road, school and hospital — with nearly $15b to spare.
“It’s also enough to pay for the approximately $2b in electricity credits the WA Government has provided to households 39 times over.”
Mr Albanese has yet to publicly kill off talk of increasing taxes on the gas sector, although it appears he is backing away from the idea.
Just this week, WA Premier Roger Cook revealed he had directly warned Mr Albanese against the move, with Woodside warning a future 25 per cent levy would kill off its $30b Browse project.
Mr Morey implored the PM not to proceed with the idea.
“Increasing taxes on the gas sector would be an own goal of epic proportions. The oil and gas industry is already Australia’s second highest contributor of company tax behind only mining,” Mr Morey said.
“The Australian oil and gas industry contributed a record $21.9b in taxes and royalties to Federal and State governments in 2024-25.
“If the objective is to raise more revenue, the answer is not to tax the same projects more heavily — it is to have more projects.
“Governments should be working with the sector to bring new supply online, attract capital and put more Australians into high-paying jobs.”
WA’s peak resources body has emphasised the importance of not shackling the sector with new taxes ahead of a meeting with Prime Minister Anthony Albanese in Perth this week.
The Chamber of Minerals and Energy WA has back-to-back breakfasts with Premier Roger Cook and the Prime Minister on Tuesday and Wednesday, during which both leaders are expected to reveal more detail about their respective Budgets.
CME boss Aaron Morey said keeping the sector operating throughout the current fuel crisis was the best way to protect the nation, economically.
He warned a new tax on gas exports would have a devastating effect on the $166 billion engine room of the economy.
Mr Morey highlighted the record economic contribution made by its membership base, which includes mining and energy giants BHP, Rio Tinto, Hancock Iron Ore, Woodside, Chevron and Mineral Resources.
“The WA resources sector injected $166 billion into the national economy last year — the equivalent of $454 million flowing across the country every single day,” Mr Morey said.
“That includes $71 million in daily wages into the pockets of direct workers, $278 million in daily payments to local businesses and community organisations, and $106m each and every day in taxes and royalties to State and Federal governments.”
He said WA had been a prime beneficiary of the economic success of the sector, with WA Treasurer Rita Saffioti set to announce the Labor Government’s eighth consecutive multi-billion dollar surplus since winning power in 2017.
“Over the past seven years, since the onset of the COVID pandemic, royalties and Northwest Shelf Grant payments have delivered nearly $20 billion in windfall revenue over and above Treasury’s forecasts,” Mr Morey said.
“And overall royalties and North West Shelf Grant payments in that period are on track to total close to $79b, providing an extraordinary dividend to the people of WA and the infrastructure and services they rely on.
“That is enough to pay for the WA Government’s entire $64b Asset Investment Program over the past seven years — every train line, road, school and hospital — with nearly $15b to spare.
“It’s also enough to pay for the approximately $2b in electricity credits the WA Government has provided to households 39 times over.”
Mr Albanese has yet to publicly kill off talk of increasing taxes on the gas sector, although it appears he is backing away from the idea.
Prime Minister Anthony Albanese at a press conference at Parliament House.
Prime Minister Anthony Albanese at a press conference at Parliament House. Credit: MICK TSIKAS/AAPIMAGE
Just this week, WA Premier Roger Cook revealed he had directly warned Mr Albanese against the move, with Woodside warning a future 25 per cent levy would kill off its $30b Browse project.
Mr Morey implored the PM not to proceed with the idea.
“Increasing taxes on the gas sector would be an own goal of epic proportions. The oil and gas industry is already Australia’s second highest contributor of company tax behind only mining,” Mr Morey said.
“The Australian oil and gas industry contributed a record $21.9b in taxes and royalties to Federal and State governments in 2024-25.
“If the objective is to raise more revenue, the answer is not to tax the same projects more heavily — it is to have more projects.
“Governments should be working with the sector to bring new supply online, attract capital and put more Australians into high-paying jobs.”
Woodside chair Richard Goyder (pictured) says oil and gas companies should get more credit for investing billions of dollars into Australia as Senate scrutiny over the industry’s tax contribution heats up.
Economy
Energy giants deserve some credit in tax fight: Goyder
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Premier of Western Australia Roger Cook said the tax would be bad for WA.
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Increased gas export taxes not good for WA, Cook warns
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The Greens-led Senate inquiry has been examining whether the sector is paying enough for the natural resources and has already heard vociferous pushback from energy giants.
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Push for supersized gas tax set to be shelved
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Mr Morey said WA’s resource and gas sector had provided its worth during the COVID-19 pandemic and the global energy shock that followed Russia’s invasion of Ukraine.
The resources sector is WA’s first and strongest defence against global turmoil.
CME boss Aaron Morey
Matt Roberts, Executive Director, Conservation Council of WA said gas companies benefited from substantial government assistance.
“Fossil fuel subsidies cost Australian governments $16.3 billion in 2025–26,” he said.
“It is estimated that the WA government is spending $271 million this year on support to gas, and $1.3 billion in capital spending and forward estimates spending on gas. And yet, we estimate that 76 per cent of WA gas exports attract zero royalties.
“The WA gas industry is built on the back of taxpayer dollars, yet it gives barely anything back and actively tries to minimise what it does give back. CCWA is calling on the Albanese government to tax this industry properly and make it pay a fair share for our gas, and, as promised, stop throwing public money at gas projects.”