Owners of Woodside Energy Group Ltd (ASX: WDS) shares may like to know how much their company has contributed to Australia's finances.
As a major commodity business, Woodside is obliged to pay taxes and royalties to state and national governments. Woodside chief financial officer Graham Tiver had this to say:
We are steadfast in our belief that governments and local communities should receive a fair return for the finite resources we extract. A balanced appreciation of this protects energy security and local jobs, as well as encouraging the future investment required to support the energy transition.
We believe in paying tax where value is created and applying arm's length principles to our international related party dealings. We do not support the use of artificial arrangements or the transfer of value to low tax or so-called tax haven jurisdictions.
Image source: Getty Images
Australian government payments
Woodside's total payments to governments around the world totalled US$3.7 billion in 2023, which was a record for Woodside. This was mostly driven by "earlier commodity price highs", which also helped propel the Woodside share price above $38.
The ASX oil and gas share is one of the largest taxpayers in Australia. This is where its headquarters and the majority of its core producing assets are located.
In Australia, it paid a total of US$3.25 billion to governments. Of that total, Woodside paid $2.91 billion to the Australian Taxation Office, and $325 million was paid in royalties, split between the WA state government and the federal government. It also paid $12 million in various fees to different Australian departments and authorities.
Woodside noted the company expected its growth projects to "support energy security and prosperity for decades to come". For example, the energy share expects its Scarborough energy project in Western Australia to generate "tens of billions of dollars in Australian taxes and thousands of local jobs".
Payments to other countries
The rest of the world received close to US$500 million in payments from Woodside.
The company paid the United States US$350.3 million, Trinidad and Tobago US$135.5 million, and Mexico US$3.6 million. Canada received US$0.4 million, and Timor-Leste US$0.3 million.
Woodside share price snapshot
Since the start of 2024, the Woodside share price has fallen by 13.29%. The S&P/ASX 200 Index (ASX: XJO) has lifted almost 2% in 2024 so far, meaning the company has significantly underperformed the index.
