As Australia’s gas exports reach incredible levels, a tax designed to share the profits does nothing.

Australia could soon become the biggest gas exporter in the world, but as our natural assets are extracted and shipped overseas, very few Australians see any benefits.

ATO data reportedly says the oil and gas industry (which is dominated by Queensland CSG and WA’s offshore LNG projects) had a combined revenue of $25 billion last year.

But the Petroleum Resources Rent Tax (PRRT) allowed the industry to rack up a total “carry-forward expenditure” of $187 billion, meaning it could pocket sales of $187 billion before being forced to pay any PRRT.

“Despite the fact that Australia's on the verge of becoming the world's largest exporter of LNG, there'll be no new revenues from the primary tax on oil and gas for the next two decades and perhaps even longer,” says Tax Justice Network researcher Jason Ward.

The PRRT has flatlined, despite the massive boom.

The PRRT is a type of rent based on super-profits, rather than a flat royalty.  This means companies can write off exploration and other capital costs against revenue before they have to pay any PRRT.

Dr Mark Zirnsak, convenor of the Tax Justice Network, says companies can claim deductions against the tax that are so broad, it ends up doing nothing.

“This is a non-renewable resource - once it's gone, we can't sell it again, it's a one shot,” he argued.

“We need to make sure we're getting the benefit for the community.”

The Tax Justice Network wants a parliamentary inquiry to find out why the tax has done so little.

The main deduction in question is known as the “uplift” rate, which allows companies to deduct more than their exploration costs.

“The oil and gas companies are entitled to 18 per cent uplift,” Mr Ward explained.

“So if they spend $100 million in year two, they have $118 million in tax credits and then that compounds annually.”

Mark Zinsak said the Australian community is being deprived of potential revenue.

“Into the future, we could be losing hundreds of billions of dollars on the gas boom,” he warned.

“This is important, because we want a decent society where we can fund our schools, our hospitals, our universities, we need this revenue for the benefit of the community.”

An oil and gas industry lobby - the Australian Petroleum Production & Exploration Association - defended the industry.

“PRRT was never intended to be paid by all projects at all times,” APPEA chief executive Dr Malcolm Roberts said.

“It is a super-profits tax so it only applies when projects achieve super-profits," said APPEA chief executive Dr Malcolm Roberts.

“The PRRT is just one of many taxes paid by the industry. The combination of company tax, state and federal royalties and the PRRT adds up to more than 50 cents in every dollar of profit.

“Taking all these taxes into account, the oil and gas industry pays the highest effective tax rate of any industry in Australia.”