The Case to Change the PRRT

Haydn Black
13 February 2017

Oil and gas companies should pay an immediate 10% royalty on production, Treasury has been told. Oil and gas companies, predictably, hate the idea, but there are many who say taxpayers are not seeing fair value from Australia's natural resources.

"With Australia poised to be the world's largest exporter of LNG but projected to generate little direct government revenue for decades, there is a major problem that needs to be addressed," the TJN said.

"At the moment projects in commonwealth waters are getting millions of tonnes of LNG effectively for free. No other industry, including coal, iron ore and onshore gas, get given the total cost of their investment (plus uplift) in free resources before they begin paying for that resource.

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