The following is an overview of Australia's Pilot of the Extractive Industries Transparency Initiative (EITI) within Australia’s resources sector.
- The aim of the EITI is to increase the transparency of transactions between governments and oil, gas and mining companies by annually publishing material payments by companies to governments and revenues received by governments.
- In 2011, the Australian Government used the EITI domestic Pilot to consider how Australia’s existing financial and governance arrangements deliver outcomes consistent with EITI principles, and to test the applicability and usefulness of the EITI in the Australian context.
- A Multi-Stakeholder Group (MSG) was established on the basis of equal participation from industry, non-government organisations, and government (including Commonwealth, Queensland, South Australian and Tasmanian governments), and was Chaired by the Department of Industry, Innovation and Science.
- Deloitte Touche Tohmatsu Ltd (Deloitte) was appointed by the Australian Government as the Administrator for the Pilot, and undertook the collection and reconciliation of material payments and revenues using the approach designed by the MSG
- Deloitte undertook a systems analysis and investigation of options for data capture, and worked with companies and government agencies for a 12 month reporting period commencing 1 July 2012. The MSG agreed that data from the 2011–12 financial year would be used to populate the final templates.
- An independent Evaluator was also appointed to assess the outcomes of the Pilot.
- The Minerals Council of Australia (MCA) provided $40,000 in funding to the Department to contribute to the evaluation of the Australian Pilot.
- The MSG agreed to the contribution at its December 2012 meeting, noting that the project would be governed by its members to ensure independence and probity.
- The MSG agreed that several other payments would be investigated during the EITI Pilot and included as part of a narrative to accompany the pilot data. Payments in this category included payments to first peoples (e.g. Native Title payments).
- The MSG also considered that certain items that affect company tax computations should also be reviewed and included in the narrative to inform a future decision on implementation. This included Fuel Tax Credits, and research and development concessions.
- The report of the Administrator and the Evaluator were used to assist the MSG in formulating a recommendation to government on whether Australia should implement EITI.
- The report of the Administrator and the Evaluator will assist the MSG in formulating a recommendation to government on whether Australia should implement EITI.
- A summary report will be made publicly available.
- The Australian Government’s decision to undertake a domestic Pilot of the EITI does not constitute an agreement to full EITI domestic implementation.
The Australian EITI Pilot's MSG met on the following dates:
- 3 November 2011
- 8 December 2011
- 15 March 2012
- 3 May 2012
- 16 June 2012
- 26 July 2012
- 21 September 2012
- 3 December 2012
- 14 March 2013
- 22 May 2013
- 19 August 2013
- 27 September 2013
- 3-4 December 2013
- 18 February 2014
- 2 May 2014