Taxes paid and benefits to the Australian economy

QUESTION

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 eighth-largest corporate income taxpayer in 2023–24.¹
• Since the PRRT has applied, Woodside has paid approximately A$22 billion across its merged portfolio to 2025.²
• In addition, the Woodside-operated North West Shelf (NWS) Project has paid more than A$42 billion in Australian royalties and excise (from start of production to 2025) (100% venture).³
• In 2025 alone, Woodside paid approximately A$2 billion in Australian taxes, royalties and levies to the Western Australian and Australian governments. That followed A$4.1 billion in 2024 and a record A$5 billion in 2023. In just those three years, Woodside's contribution is almost equal to the Australian Government's 2023–24 and 2024–2025 Budget provisions to increase key social security payments and expanded access to vulnerable groups (A$11.5 billion).⁴ 
• Also in 2025, Woodside paid A$65 million to state governments in payroll taxes, bringing the company's total payment of payroll taxes to A$875 million since 2011.

Since 2011 Woodside has paid approximately A$25 billion in Australian taxes, royalties and levies.⁵ That's the equivalent of A$2,501 per Australian family.⁶ In this same period, Woodside also paid wages to Australian employees which have generated more than A$5 billion in pay as you go (PAYG) withholding⁷ – 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. The company's Australian tax and royalty payments in 2020 were A$707 million⁸ 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 2023.⁹
• 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 – totalling A$35.4 million in 2024 – you can read the latest 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 2025 Woodside’s effective income tax rate on its reported Australian profits was 29.5%. Further details are contained in Woodside's 2025 Annual Report.

Since the PRRT has applied, Woodside has paid approximately A$22 billion across its merged portfolio.¹⁰ Furthermore, the Woodside-operated NWS Project has paid more than A$42 billion in Australian royalties and excise since starting production (100% venture)¹¹, 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$55 billion in direct and indirect Australian taxes over the project lifecycle by Woodside, its joint venture participants and companies working on the project.¹²

Taxes versus royalties – understanding the difference

Taxes and royalties are both forms of taxation. However, they apply in different circumstances.

Taxes are payments to governments on a company’s income, production or profit. For Woodside, tax payments include corporate income tax, petroleum resource rent tax (PRRT), the offshore petroleum levy and excise. 

Royalties are payments to governments for the right to extract petroleum resources, typically at a prescribed percentage of revenue, less any deductions that may be applied.

The NWS Project has always paid excise and royalties and will continue to do so as required by legislation.

In 2012, the PRRT regime was amended to include the NWS Project and other similar projects, with transitional arrangements put in place to ensure they were treated fairly under the revised system. These arrangements recognised the substantial capital investment – in the tens of billions of dollars – made in the NWS Project since it began operating, as well as the significant federal royalties and excise paid as part of that taxation regime.

More recent projects that began operating after 2012, such as Woodside’s Pluto LNG Project, pay PRRT but do not pay excise and royalties.

^{* Figures are reported on a cash basis, net of any refunds received (e.g. refunds of tax overpaid in prior years) and are rounded to the nearest million.}

^{1 Based on information from the Australian Taxation Office website 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 2023 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 31 December 2025.} 

^{6 Based on information available here using the estimated total number of households in 2021.}

^{7 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 2025.}

^{8 www.woodside.com/sustainability/governance/corporate-governance.}

^{9 Converted from US$4.16 billion using the 2023 average AUD/USD exchange rate of $0.6645.}

^{10 Includes data relevant to the assets acquired through the merger with BHP’s petroleum business, both before and from 1 June 2022.}

^{11 Based on amounts collected by the Australian Government in Commonwealth Budget papers from 1984 to 2023 and other records.}

^{12 www.woodside.com/docs/default-source/our-business---documents-and-files/scarborough/economic-impact-of-the-scarborough-energy-project_brochure.pdf}