Factcheck: Do nurses pay more tax than oil and gas companies in Australia?

The Claim

When calling for the implementation of a 25% tax on revenue produced when fossil fuel companies export gas from Australia, ACTU Secretary Sally McManus claimed:

“The nurses of Australia pay more tax than oil and gas companies.”

The Facts

First, on the substance of the policy proposal: analysis by The Australia Institute shows that a 25% tax on gas export revenue would raise around $12.5 billion annually, enough to triple the Australian government’s housing expenditure.

In fact, the research showed the ACTU’s proposed tax on gas exports would raise enough revenue to:

• Cut the cost of prescriptions with a 58% increase to the pharmaceutical benefits scheme;
• Double the Australian Government spending on public schools;
• Increase childcare subsidies by 75%;
• or Eliminate HECs.

But what of the claim that nurses pay more tax than oil and gas companies?

Australia Institute research shows that over the last 10 years, Australia’s nurses have paid $52 billion, or an average of $5.2 billion per year, in tax.

By contrast, the oil and gas industry has paid $45 billion over the  same period or, on average, $4.5 billion per year.

“The ACTU’s proposal would not only provide a large boost to Commonwealth revenue that could vastly improve Australia’s health, education and housing, it would cut energy bills for Australian households and businesses by incentivising gas companies to supply more gas to Australians and in turn lower the price,” said Richard Denniss, Executive Director of The Australia Institute.

“Australia is one of the world’s largest exporters of gas, but the Australian government receives more from HECS repayments each year than it gets in revenue from the broken Petroleum Resource Rent Tax each year.”

“The introduction of a gas export tax would incentivise gas companies to supply more gas to the Australian market, bringing down both gas and electricity prices for Australian households and businesses.”

The Verdict: True

McManus’ claim that nurses pay more tax than oil and gas companies in Australia is TRUE.

Furthermore, the ACTU’s proposal for a 25% tax on gas export revenue would provide a significant boost to the Government’s funding for housing, would help to fix a broken tax system for oil and gas exporters, and provide enough funding for the government to do a lot of good.