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Policy & Regulation

Aussie gas tax must change to suit new era – experts

Australian hydrocarbon laws such as the PRRT no longer accurately reflect the trading environment and must be updated, academics argue Australian hydrocarbon laws such as the PRRT no longer accurately reflect the trading environment and must be updated, academics argue.
By Sally Bogle 29 July 2016 Asia Pacific / Policy & Regulation 0 21303
Drilling in the Cooper Basin. Experts say Australia’s oil and gas tax laws are no longer fit for purpose. (Beach Energy)

Australia needs to review the way it taxes LNG projects to ensure it earns enough income from its valuable oil and gas resources. However, it must do so without unduly stifling investment in an era of high capex but low commodity prices.

According to Diane Kraal, senior lecturer in the Department of Business Law and Taxation at Monash University, tax revenues from Australia’s gas sector are in decline. This is partly the result of the drop in commodity prices but also because of the way in...