The Tax Justice Network Australia (TJN-Aus) praises the Treasurer’s decision to establish the Petroleum Rent Resource Tax (PRRT) Review and commend the effort to analyse a complex issue and propose concrete solutions in a compressed time frame. We appreciate the opportunity to make this submission in order to put forward possible solutions to ensure that Australians get a fair return from the exploitation of their 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.
This submission will focus on the offshore gas projects which are only subject to the PRRT. The submission will briefly examine the promises of government revenues, outline the key failures of the PRRT system and propose a new royalty regime to ensure that Australians receive some benefit for their natural resources, and that the oil and gas industry competes on a level playing field. While further economic modelling is underway, we believe that this proposal could generate $4 to $6 billion over the forward estimates.