Thank you, Cassandra for that introduction.
Good afternoon distinguished guests, ladies and gentlemen.
It’s an honour for ExxonMobil Australia to be able to sponsor this event today and for me to introduce the Treasurer of Victoria, The Honourable Tim Pallas MP.
I begin today by acknowledging the Wurundjeri Woi-wurrung people of the Eastern Kulin nation, the Traditional Custodians of the land on which we gather today and pay my respects to their Elders past and present. I extend that respect to Aboriginal and Torres Strait Islander peoples here today
At ExxonMobil Australia, we understand the critical role natural gas plays in Australia’s economy. In addition to heating our homes and producing electricity, natural gas is a vital feedstock for the manufacture of countless products that support our way of life.
We’re proud to say that all of our Gippsland gas goes exclusively to the domestic market, and our people across our operations in Victoria are working hard every day to deliver the energy Australia needs.
During last year’s electricity market failure, our innovative team managed to increase our gas production by 11% to fill shortfalls, the highest annual gas production from the Gippsland Basin in the past five years.
That was an extraordinary achievement and it was made possible because of our extraordinary people and because we invested through the cycle.
ExxonMobil Australia makes a significant contribution to the Australian economy, not just by powering Australia’s households but by also contributing towards direct tax and royalty payments to Local, State and Federal governments.
Last year, we had an effective tax rate of 49% for our Australian operations which has helped Australian governments fund essential services and infrastructure across our nation, including infrastructure here in Victoria.
For the year 2022, we are going to pay $1.65 billion in Corporate Income Tax (CIT) and Petroleum Resource Rent Tax (PRRT), on top of the $3.1 billion in other taxes, royalties and other direct payments to Federal, state and local governments, including payroll tax to the Victorian Government.
New investments are required to ensure we can maintain our gas supply and ensure energy supply to Australia. It is easy to underestimate what it takes to do this. Our large, complicated projects require long-term planning and need to be underpinned by a long term and durable regulatory and fiscal investment climate.
Our goal is to continue to play a key role in powering Australia through jobs, taxes and energy security as we have over the past 50 years.
To conclude, I have one more, very important, job before I invite the Treasurer to speak, and that is to let you all know that lunch will be served after his address, with a Q&A session to follow lunch, once we’ve all had an opportunity to digest what the Treasurer has shared.
I’d like to now welcome the Treasurer to the stage to share his perspectives on the 2023 Victorian budget.