The gas industry in Australia significantly impacts the nation’s economy. According to a recent report by KPMG, commissioned by Australian Energy Producers, the sector contributes an incredible $105 billion annually and supports approximately 215,000 jobs. This substantial contribution from the gas industry underscores its crucial role in Australia’s economic structure. By leveraging data from the Australian Bureau of Statistics, the report reveals the gas sector as the country’s most productive, contributing an impressive $2.8 million in value-add per full-time equivalent worker.
Economic Contributions and Key Figures
The report’s key findings emphasize the gas industry’s direct annual contribution of $85 billion to Australia’s economy, accounting for 3.7% of the nation’s Gross Domestic Product (GDP). This robust figure illustrates the importance of the gas sector in bolstering the country’s financial landscape. Additionally, the industry paid about $17.1 billion in taxes and royalties during the 2023-24 fiscal year. This amount contributed substantially to government revenue, enabling further investment in public services and infrastructure.
Furthermore, the gas sector engaged in significant transactions with other local businesses, purchasing around $33 billion worth of goods and services. This level of expenditure reflects the industry’s expansive supply chain, which in turn stimulates broader economic activity. On the employment front, the sector’s salaries totaled $6 billion, providing stable and lucrative incomes to thousands of Australians. These financial dynamics collectively highlight the multifaceted economic benefits of the gas industry.
Future Predictions and Investment Recommendations
A pivotal aspect of the report is its forecast regarding future growth. KPMG projects that a 5% increase in gas production could elevate the economy by an additional $10.5 billion and create 1,150 new jobs. Such growth prospects highlight the need for continued investment in the sector to harness these potential benefits. Samantha McCulloch, Chief Executive of Australian Energy Producers, underscored this point by emphasizing the critical need for private sector investment in new gas projects.
Investment in new gas ventures is essential not only for economic enhancement but also to prevent potential gas shortages anticipated on Australia’s east coast by 2027. To avert these shortages and their probable counterproductive effects, McCulloch advocates for the removal of barriers to gas supply and the vigorous promotion of investments in new projects as a top national priority. By addressing these challenges proactively, Australia can secure the ongoing contributions of the gas industry to the nation’s economic well-being.
Comprehensive Role and Future Considerations
The gas industry plays a vital role in Australia’s economy, making a significant impact according to recent findings by KPMG, which were commissioned by Australian Energy Producers. The industry contributes an impressive $105 billion to the national economy every year and supports around 215,000 jobs. This demonstrates the essential role the gas sector holds within Australia’s financial framework.
The report, utilizing data from the Australian Bureau of Statistics, further identifies the gas industry as the most productive in the country, contributing approximately $2.8 million in value-add per full-time equivalent worker. This figure underscores the sector’s efficiency and crucial contribution, highlighting its unmatched productivity compared to other industries. The substantial economic input of the gas sector not only supports thousands of jobs but also helps stabilize and grow Australia’s economy, further solidifying its role as an indispensable component of the nation’s financial health and development.
