Treasurer Jim Chalmers promises faster ‘yesses and nos’ on gas projects, clears path for PRRT shakeup

Treasurer Jim Chalmers is promising faster decisions on approvals for resources projects, in a promise that heaps pressures on the Federal Opposition to wave through Labor’s $2.4 billion gas tax changes.

Dr Chalmers said the Federal Government understood the mining sector’s contribution to the economy and wanted to unlock more investment — without compromising on “standards, scrutiny and security”.

The Coalition has been refusing to support the Federal Government’s planned overhaul of the Petroleum Resources Rent Tax (PRRT) unless it agreed to a list of demands designed to fast-track new gas supply.

In a speech on Monday, Dr Chalmers said he had written to Shadow Treasurer Angus Taylor and Shadow Resources Minister Susan McDonald to assure them some of their requested changes were already in train.

This includes Resource Minister Madeleine King’s ongoing work to clear up consultation requirements on offshore gas projects in the aftermath of Santos and Woodside’s legal battles with traditional owners.

Consultation would be more “targeted and effective”, Dr Chalmers said, while proponents would be given more guidance upfront about when approvals were needed.

The Treasurer said the Government would also allocate extra funding to help identify environmental risks earlier in the assessment process.

“This will accelerate approvals through better use of data – meaning better, faster decision making and clear priorities without cutting corners on environmental protection - resulting in faster yesses and faster nos,” Dr Chalmers told a summit in Sydney.

Among its list of demands, the Coalition wanted existing projects shielded from the scrutiny of a future Commonwealth environmental protection watchdog.

Labor is committed to establishing the federal EPA as part of an overhaul of Commonwealth environmental protection laws, which will include new national standards.

Dr Chalmers on Monday confirmed the changes would be grandfathered, meaning existing applications would be assessed under the current rules.

“Our changes are designed to be better for the environment, better for business and better for our economy,” he said.

“They are a practical way to clarify what our national environmental standards are and make it faster and easier to assess whether a project meets them.”

Dr Chalmers said the Federal Government was pursuing the changes for their “own good reasons” – not as a bargaining chip to secure the Coalition’s support for the PRRT shakeup.

The changes to the gas tax, which are still before parliament, are expected to raise $2.4 billion over four years.

Mr Taylor indicated the opposition would not be rushed into a position, noting a Senate inquiry into the legislation isn’t due to report until April 18.

He said the PRRT changes must not add to the pressure on the resources sector, which he argued was under threat from Labor’s policies on industrial relations, energy and red and green tape.

“It has taken three Labor ministers 100 days just to respond to the Coalition’s letter regarding the PRRT,” he said.

“I was in Perth last week and spoke with a number of business leaders from the resources and energy sector, who raised serious concerns about the timing of approvals despite the Government’s assurances.

“Our gas industry is vital for our manufacturers and bringing down household bills. The resources sector is vital to our economic prosperity and jobs across the country”.