Richard Denniss notes that the export revenue from Australia’ natural gas mostly goes to foreign shareholders.
- Adjunct Senior Research Fellow, Business Law and Taxation Dept, Monash Business School, Monash University
Nobel Prize-winning American economist Joseph Stiglitz made the assertion on ABC’s Q&A on Monday night. What exactly did he mean, and does the claim stack up?
Australia gets less from the petroleum resource rent tax than it did 20 years ago when exports were small.
A small change in the method for valuing gas would increase revenue from the petroleum resource rent tax by US$15.5 billion to 2030, compared to the current US$5 billion to 2030.
The Western Australian government is trying to improve its budget position but businesses claim increasing royalties will deter investment.
Local communities are likely to be dissatisfied with the report from the PRRT review because its recommendations only apply to future projects and won’t herald any changes in the budget.
The way Australia taxes companies for gas projects now lags behind our closest neighbour, Papua New Guinea, which has reformed its tax system to ensure it gets money sooner.
Australia is missing out on revenue from some gas projects because the petroleum resource rent tax doesn’t apply.
Woodside’s deferral of its floating gas project in Western Australia is just the latest blow low oil prices have dealt the industry.
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