New polling indicates that most people support a higher tax on gas exports, calls to make LNG exporters pay more have been rekindled by a viral senate estimates moment that contrasts offshore gas taxes with beer excise taxes.
In the video, which independent senator David Pocock posted online, he asks treasury how much Australia receives from beer taxes versus the Petroleum Resource Rent Tax (PRRT).
Dr. Shane Johnson, the deputy secretary of the Treasury, informed the hearing that the beer excise was expected to generate $2.7 billion in 2025 to 2026.
He stated that $1.5 billion in PRRT revenue was anticipated.
Offshore petroleum projects are subject to a federal tax known as the PRRT. It is not a fixed fee on export volumes rather, it is applied at 40% of a project’s taxable profit.
The exchange has strengthened the case that Australia’s resource tax policies are out of step with the volume of exports.
Pressures from the cost of living have also kept people focused on who is responsible for what.
54% of voters favored a flat 25% tax on gas exports, according to a RedBridge survey commissioned by the Australia Institute.
It was discovered that 6% were against it and 30% were unsure. Outside the Coalition, support was highest with 48% in favor and 9% against, even coalition voters were more likely to support the idea than oppose it.
According to the institute, the ACTU has also supported the idea, it claimed that the plan is a simple method of increasing export earnings.
Finance Minister Katy Gallagher stated during the Senate hearing that the government had already passed legislation amending the PRRT.
“It was focused on its election commitments,” she said, the comparison’s detractors claim it ignores other payments made by gas producers.
