SYDNEY MORNING HERALD
10 February 2017
The federal government could reap an extra $6 billion in tax revenue over the four-year budget horizon if liquefied natural gas projects operating in federal waters are brought under a simple royalty scheme that already applies to competing gas projects in Australia.
A flat 10 per cent Commonwealth royalty would, for the first time, force multinational-owned mega-projects like Chevron's Gorgon plant to pay for the publicly-owned resource it extracts.
The $1.5 billion-a-year revenue fix has been proposed by the Tax Justice Network in its submission to Treasurer Scott Morrison's review into the petroleum resource rent tax, or PRRT.
The review, led by former Treasury official Mike Callaghan, was announced by Mr Morrison in December, 12 months after Fairfax Media began to raise concerns that the PRRT was being gamed by fossil fuel multinationals and would not deliver any significant revenue for decades.
Tax Justice has called for a 10 per cent royalty similar to that paid by onshore developments in Queensland and the 33 year-old north-west shelf project off the coast of Western Australia.