Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

My question is addressed to Senator Ruston, who is representing the Minister for Resources, Water and Northern Australia. The Australian government used the weakest gas laws in the world to attract foreign oil and gas companies to exploit Australia's offshore deposits of natural gas. The government now receives approximately $200 million a year for the offshore natural gas taken from the North West Shelf, which drives tens of billions of dollars of exports, including to China, where we supply 10 per cent of their total energy requirements. Failure to get a fair payment for our offshore gas represents a gift of billions of dollars a year to foreign oil and gas companies. This is money better spent on Australians. What has stopped the government from implementing a single recommendation from the 2017 Callaghan report so Australia can be fairly paid for its offshore gas?

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

I thank Senator Hanson for her question. At the outset, can I acknowledge her longstanding and passionate commitment to ensuring that Australians are the beneficiaries of our nation's endowment of natural resources. The government has worked very hard to strengthen the integrity of the petroleum resource rent tax by addressing the design issues that were contained within the Callaghan independent review. In fact, the government brought down its response to the Callaghan review on 2 November 2018. In that, we then worked to make sure that we implemented many of the recommendations that were contained in that review—things like reducing the uplift rates that apply to carried forward expenditure. We've also set up a process to address the remaining recommendations relating to the gas transfer pricing for LNG projects. Indeed, legislation giving effect to the key changes came into force on 1 July 2019 and will raise an additional $6 billion over the next decade. We are absolutely committed to supporting the resource sector, which has invested over $600 billion in Australian projects over the last decade. But, in doing so, we need to make sure that we strike the balance between ensuring that investors around the world know that Australia's doors are open for investment and ensuring that the national interest is being realised by making sure Australians are the beneficiaries of our resources.

Foreign direct investment has been an enduring feature of our national story, and the oil and gas industries have absolutely been at the forefront of making sure that we are able to prosper as a nation by realising the value of the resources that we have in the ground, whether they be under our terrestrial soils or under the sea. We will always make sure the national interest is served.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Hanson, a supplementary question?

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

I understand it's not your portfolio, but that response—I'm sorry—is not a response at all. The government advised Papua New Guinea on its gas laws. They got a better deal from the same gas giant operating on the North West Shelf. If we can help PNG negotiate fair payment for natural gas, why can't we do it for us?

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

I thank Senator Hanson for her follow-up question. I believe the Australian government, through a number of regimes, has always sought to make sure that Australians are the beneficiaries of resources that belong to all Australians. That's why we put in place a regime around the petroleum resource rent tax that was brought in by those opposite back in 1987, to make sure that these projects were providing benefit to Australians which, most importantly, included increasing the taxation revenue for Australia. As an example, the most recent data available from the Australian tax office says that the resources sector paid approximately $11.4 billion in company tax in 2017-18. I'm advised that, in 2018, Woodside alone paid $550 million in Australian corporate income tax and— (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Hanson, a final supplementary question?

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

It's estimated that we actually export about $55 billion worth of gas. Chevron, ExxonMobil and Shell already have $360 billion in tax credits, so we're not going to get tax out of them. The Reserve Bank says Australians need to buy shares in foreign gas companies or work for them to get any benefit from Australian owned offshore gas. When will the government act in the best interests of Australians and change the laws?

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

I'm actually not aware of the specific piece of advice you refer to from the Reserve Bank but one thing I can advise the chamber is that companies operating in Australia in our mineral and petroleum industries are subject to corporate income tax. As I said, in 2017-18 alone, $11.4 billion come into the Australian government coffers as a result of the taxation paid by the mineral and petroleum industries.

Royalty revenues are also received by state and territory governments for onshore mineral and petroleum production. It is my understanding that in the years 2018 and 2019 approximately $14 billion was realised by state and territory governments in royalty revenues from these types of projects. Maintaining a stable investment environment, including through our taxation system, is absolutely vital in ensuring we can continue to prosecute our resources for the benefit of all Australians.