Greg Jericho
Chief Economist

Jim Chalmers just said:

“Including the changes to the PRRT, which will see the offshore LNG industry pay more tax sooner as well as the efforts on tax compliance.”

Alas those changes will see less revenue being paid by gas companies.

The PRRT is meant to be paid by gas companies when making excess profits. Alas even though we have an LNG boom, no LNG export project has paid a cent of PRRT

Last year the government changed the PRRT include capping eligible deductions against revenue at 90% of the revenue. They did this after asking the gas industry if the changes were ok. The gas industry said “Oh my god, YES!!!”

IN the 2023-24 budget – before the changes were made, the government estimated that $10.8bn would be raised by PRRT from 2023-24 to 2026-27.

In this week’s budget (after the changes are in place) the government now expects only to raise $6.3bn over those 4 years.

No wonder the gas industry loved the changes.