The Labor Party has come under fire for its plans to collect billions of dollars from gas producers by bringing forward a key industry tax. Crossbench MPs have argued that the Albanese government should have gone harder after it announced it would increase the revenue taken from the petroleum resource rent tax by $2.4bn over the next four years.
From July 1, the government intends to implement a 90% limit on deductions that can be offset against the Petroleum Resource Rent Tax (PRRT). These modifications, which have been discussed since 2019, would mean that large liquefied natural gas operations would pay the PRRT about ten years earlier than expected.
After Jim Chalmers announced the PRRT reform over the weekend, several teal independents, the Greens and crossbench senator David Pocock reacted with some dismay.
Meanwhile, Independent Mackellar MP Sophie Scamps saw the reforms as a positive step, although she noted that they were still tiny and timid given LNG exports are worth more than $90bn annually.
“A red flag is raised by the Australian Petroleum Production & Exploration Association (APPEA), a prominent oil and gas lobby group, due to the enthusiastic reception of the changes,” she said.
