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Executives from the biggest fossil fuel companies in the country butted heads with some of their biggest critics in federal politics on Friday morning as a Senate inquiry into gas company taxation rolled into Perth.
The inquiry was cordial but had its tense moments as Greens senators and independent senator David Pocock grilled Woodside and Chevron executives, as well as industry lobby group Australian Energy Producers chief executive Samantha McCulloch.
The inquiry comes against the backdrop of a campaign led by Pocock and The Australia Institute, calling on the Albanese government to apply a 25 per cent tax on gas exports over concerns the current levy, known as the Petroleum Resource Rent Tax, was not adequately reimbursing Australians for their natural resources.
Both Woodside, Chevron and McCulloch reiterated public commentary from gas producers that a new tax would turn away investment in the Australian sector at a time it needed better energy security.
Chevron Australia’s finance general manager Maggie McCourt said the company supported the PRRT because it incentivised the capital-intensive and risk-based nature of the gas industry.
“It’s what got the industry started, and it is what will allow investment to continue to come in the future,” he said.
“Other types of taxes will disincentivise that sort of investment going forward, and may make it difficult for it to compete for capital, not just for Chevron.”
Woodside chief financial officer Graham Tiver said his company was already a significant taxpayer that paid about 44 cents in every dollar of profit the company made once corporate tax and royalties were accounted for.
“Across our merged portfolio, we have paid more than $22 billion in PRRT since its introduction, including $471 million last year. In total, Woodside paid around $2 billion in Australian taxes, royalties and levies in [2025] and approximately $13.8 billion over the last four years,” he said.
Tiver also reiterated comments his company made earlier this week that a 25 per cent tax could kill the $30 billion Browse project.
“At our mid-case [price] scenario Browse does work, and it achieves its necessary hurdle rates from within Woodside’s investment framework,” he said.
“What we were saying earlier in the week, and it still applies today, is that if a gross 25 per cent levy was applied to revenue, the economics will not stack up.”
Inquiry chair and Greens Senator Steph Hodgins-May voiced her displeasure with the companies over the absence of Woodside chief executive Liz Westcott and Chevron Australia managing director Balaji Krishnamurthy at the hearing.
Chevron’s asset development general manager Kynan Scarr said given the inquiry related to taxation issues, McCourt was the company’s most senior finance and taxation professional, and he could talk to future investment.
The companies’ political donations and lobbying efforts also featured heavily.
Hodgins-May probed both companies about whether they had tickets to Treasurer Jim Chalmers’ budget night dinner event scheduled next month and whether they had lobbied Chalmers, Prime Minister Anthony Albanese or Premier Roger Cook over the 25 per cent gas tax.
Those questions were taken on notice.
Pocock asked them all about the lobbyist sponsorship passes, which allow lobbyists and companies access to Parliament House.
Both companies and McCulloch said they had passes.
McCulloch said she had one, but couldn’t recall which MP sponsored her.
“You dont know?” Pocock asked.
“I have a very good team that arranged these things for me, Senator,” she responded.
“I honestly couldn’t recall the process.”
Pocock’s hopes for a 25 per cent tax on gas company revenues appear dashed with reports that Albanese will not pursue it in the May budget.
The campaign, which gained momentum over social media, claims the Commonwealth could reap up to $17 billion a year by forcing multinational gas exporters to pay their “fair share” for the nation’s finite resources.
However, with the oil price shock and the Strait of Hormuz closure strangling one-fifth of the world’s crude oil supply Albanese last week went on a charm offensive to oil refining companies to ensure Australia’s fuel supplies were not impacted.
He gave commitments LNG supplies back to those same countries would not be impacted.
WA Premier Roger Cook came out in strident defence of the gas sector, explicitly saying he did not support the tax idea.
“I don’t think it’d be good for Western Australia, and I’ve made those views clear to the prime minister,” he said earlier this week.
“I understand that that sort of conversation has superficial appeal.
“If we are going to continue to attract the investment that we need for these projects, which deliver prosperity, literally over decades, you have to make sure you provide a stable environment for these companies to be able to make those investment decisions.”
The inquiry is set to report next month.
