Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

It is the case that the government’s policy in relation to this issue is a tax on profits. We have also said that it is a tax that would cut in above a reasonable rate of return; we have made that clear. There are also mechanisms within the policy which are intended to assist companies which are more marginal. In fact, one of the arguments in favour of a profits based regime as opposed to a volumetric based regime—leaving aside the specific debate on this tax—has always been that it would be a more fair way to levy taxation on the sector and that it would mean that those who earn more profit would pay relatively more tax than those who earn less. Therefore, as a matter of logic, that would mean that there would be companies at the marginal end who are likely to pay less under a profits based regime than under a volumetric regime.