The Greens have offered to pass the Government’s gas tax changes through the Senate if the revenue from the changes is doubled by lowering the deductions cap from 90% of assessable receipts to 80%.
Documents provided to the Senate under an Order for the Production of Documents show that this is within the range originally advised by Treasury to the Treasurer.
Greens Treasury spokesperson Senator Nick McKim has written to Treasurer Jim Chalmers to make the offer, which has the support of Senators David Pocock, Jacqui Lambie and Tammy Tyrrell.
Gas companies are currently sitting on a staggering $277 billion of uplifted tax credits that they have to burn through before they will have to pay any super profits tax. This is greater than the GDP of New Zealand.
Doubling the minimum revenue that these gas giants will be assessed against from 10% to 20% of their assessable receipts would raise $2.6 billion in much needed revenue over the forward estimates period.
This proposal will only affect five LNG projects that are raking in billions in unearned super profits off the back of the Ukraine invasion. The government’s proposal is intended only to plug the gap in declining revenue from the old Bass Strait fields as they run out.
These five massive gas projects have never paid a cent in royalties or super profits tax.
Treasury spokesperson, Senator Nick McKim said:
“The gas cabal has been playing the major parties like fiddles. This is a chance for Labor to take a small step towards making fossil fuel corporations pay their fair share of tax.”
“Labor now has a very clear choice. It can work constructively with the Greens to double the additional revenue from gas companies, or settle for half that amount in exchange for weakening environmental regulations for gas projects to the satisfaction of the Dutton Opposition and the gas cartel.”
“Ten gas companies and lobby groups were in the room designing this tax with Treasury officials. These daylight robbers all signed non-disclosure agreements and came up with a proposal that wasn’t previously part of Treasury’s review.”
“No other taxpayer gets such access to the government that they can design their own tax rates.”
“Labor appears to have forgotten that it is Parliament, not gas companies, that sign off on the laws of the land.”