Shell, Origin Energy and ConocoPhillips face parliamentary inquiry over proposed gas export tax changes in Australia
Criticisms of Australia's tax regime for gas exports are being levelled at producers and business groups, which argue higher taxes will chill investment.
Australia’s resources industry will push back against calls to overhaul the tax regime for gas sold overseas as producers front a parliamentary inquiry.
Representatives from Shell Australia, ConocoPhillips and Origin Energy will be prodded by senators as momentum builds behind a proposal for a 25 per cent tax on gas exports.
Only Shell is scheduled to send its most senior executive, a decision sharply criticised by the Greens who have been urging company chiefs to front up.
Sign up to The Nightly's newsletters.
Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.
By continuing you agree to our Terms and Privacy Policy.On Tuesday, parliamentarians heard from think tanks, economists, environmental charities and social services groups all broadly in support of higher levies on gas exports.
The shortcomings of the Petroleum Resources Rent Tax, the federal mechanism for taxing resource profits for the gas industry, was well canvassed in the first batch of hearings.
Modelling from ethical investor Future Group suggests Australia is capturing less than seven per cent of its resource rents through the PRRT, royalties and excise, much lower than comparable revenue raised in Norway, Qatar and the United Kingdom.
Peak industry body Australian Energy Producers argues Australia’s tax regime for oil and gas is very different to that of Norway and Qatar.
Both countries share risk and reward through state investment and supportive tax arrangements that lower up-front costs and provide fiscal stability, it says.
The industry body also defends the tax haul from oil and gas and says the industry is the second-highest contributor to commonwealth income taxes.
Raising taxes would discourage investment in Australia and nudge companies to explore projects elsewhere, the gas industry group maintains, potentially jeopardising the availability of domestic supply.
The Queensland Resources Council, the Business Council of Australia and officials from multiple government departments will also be heard by the committee on Wednesday.
