Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

Thirty years ago a few companies got a tax exemption for condensate. I repeat: that was 30 years ago. That proposition is no longer needed and is now delivering windfall gains not available to anyone else. These are windfall gains that belong to the Australian people. After 30 years of this tax exemption, the North West Shelf project is now mature and profitable, and the companies benefiting from this concession are enjoying huge profits from rising international oil prices. There are members opposite—Liberals opposite—who seem to care more about the windfall profits that are gained from one project than they do about lowering inflation and interest rates for working families who are doing it tough. For example, the windfall gain between 2001-02 and 2006-07 was around $1.4 billion and would now, on present-day figures, be even higher. If Woodside had paid the condensate tax this year their profit would have been $950 million instead of $1 billion. That is still $340 million more than its profit this time last year.

The proposition is simply this: the measure that the government has proposed removes a tax exemption for condensate which is not, as was stated yesterday, a tax on gas. Those opposite have been told this measure will not be putting up gas prices. The CEO of the North West Shelf Venture told the Senate: ‘Our current domestic contracts are in place and will be honoured—and that is for many, many years; they are long-term contracts.’ The Treasury have made it clear to the Senate Economics Committee that they do not expect there to be any impact on prices outside those contracts.