10 February 2017
A commonwealth royalty on Australia’s offshore oil and gas fields could generate between $4 billion and $6bn over the next four years, anti-tax avoidance group Tax Justice Network has claimed.
But global oil giants Chevron and Shell, the nation’s biggest LNG developer and producer respectively, say the nation’s fiscal regime is already challenged, and any move to change the Petroleum Resource Rent Tax would be a severe threat to future development.
In submissions to Treasury to be published today, battlelines have been drawn between those who say the nation is not getting enough income quickly enough from a $200bn boom-time LNG construction spree and those who want to make returns from their investment.
The TJN, which has been highlighting near-term shortfalls in the PRRT, proposes introducing a 10 per cent royalty to tighten the government’s grip on Australia’s fast-approaching gas bonanza, which it claims has been weakened by changes including a Gillard government era deal with the industry.