Australian Energy Producers condemns the Greens’ threat to hold R&D Tax Incentive reforms to ransom over demands for higher taxes on Australia’s oil and gas industry.
Australian Energy Producers Chief Executive Samantha McCulloch said the Greens were putting ideology ahead of investment, innovation and reliable, affordable energy.
“Critical investment in Australian research and development should not be a bargaining chip in Senate negotiations,” Ms McCulloch said.
“The Government should reject the Greens’ demands to single out oil and gas producers and retain access to the R&D Tax Incentive for research that meets the legislated eligibility requirement.
“Undermining investment in the industry Australians rely on for energy, manufacturing and jobs will only make it harder to deliver reliable and affordable gas.”
Ms McCulloch said the R&D Tax Incentive was an established part of Australia’s taxation system, introduced to encourage investment in research and development to support innovation, productivity and economy-wide benefits.
“The incentive supports eligible oil and gas research into technologies that improve production efficiency, enhance safety and reduce emissions, including carbon capture and storage – all things which the scheme should continue to support.”
Ms McCulloch said singling out gas producers would undermine confidence in Australia’s tax settings and discourage investment in innovation.
“Australia needs policies that encourage investment in new gas supply and the technologies that improve productivity and reduce emissions.
“The Greens’ determination to impose ever higher taxes would weaken that investment, putting future supply at risk and adding to pressure on energy prices.
“The Government should reject this political ransom demand and ensure Australia’s tax system continues to support investment, innovation and energy security.”
