Oil and gas industry statement on Government’s PRRT deal with the Greens

Attributable to Australian Energy Producers Chief Executive Samantha McCulloch:

The Government and Greens have today announced a deal relating to reforms to the Petroleum Resources Rent Tax (PRRT) and offshore environmental approval regulations.

The expected passage of the Government’s PRRT legislation provides a level of certainty to the industry to assess future investment decisions.

However, securing this should not be at the expense of fixing the broken offshore approvals system.

Regulatory certainty and timely environmental approvals are needed to address delays facing critical new gas supply projects and to restore investment confidence.

It is disappointing that the Government has deferred the important offshore regulatory reforms, which the Future Gas Strategy released last week identified as an “immediate action“.

Regulations which provide clarity and certainty for industry while maintaining comprehensive and meaningful consultation are urgently needed, and the Government should work with the Coalition to progress these necessary reforms as soon as possible.

Australia’s long-term energy security and net zero transition requires investment in new gas supply.

The Greens cannot be allowed to hold Australia’s energy and economic security to ransom, and we expect the Government to deliver on the Future Gas Strategy’s commitment to ensure Australians have access to reliable and affordable gas supply.

The extra revenue from the PRRT changes underscores the growing contribution by the oil and gas industry to governments, with over $17 billion expected to flow directly to state and federal Budgets from taxes and royalties this financial year.

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