David Pocock (ACT, Independent) Share this | Link to this | Hansard source

D POCOCK () (): My question is to Senator Wong, the Minister representing the Treasurer. How much petroleum resource rent tax has been paid by LNG projects to date?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Thank you to Senator Pocock for the question. This is the advice I have to date: PRRT revenue predominantly relates to oil and gas produced in Bass Strait, and no offshore energy project has paid PRRT yet. Most offshore LNG projects are not expected to pay substantial amounts of PRRT before 2030, whilst earning significant revenues from gas resources. The Treasury review—the gas transfer pricing review—highlighted the shortcomings of the PRRT for the offshore LNG industry and the need to adapt the rules for these types of projects.

The measure that is contained in the budget and that the Treasurer has announced is intended to address this problem and will require the offshore LNG industry to pay more tax sooner. It will bring forward PRRT payments those projects are expected to pay and additional PRRT payments from those projects not expected to pay under current policy settings—in other words, from those who under current settings are likely to return to government certain tax receipts, whose payments it will bring forward, but it will also ensure that some projects which would not pay under current settings would pay some PRRT. The intention is to ensure a return to the Australian community from the gas resources even when there are low prices.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pocock, first supplementary?

David Pocock (ACT, Independent) Share this | Link to this | Hansard source

After company tax is paid, does the government think that $0 in PRRT is a fair return for Australians? If it isn't, why are you just bringing forward the date they pay rather than actually ensuring that Australians are paid for our own gas that is being exported or sold back to us at export prices?

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Because it was written by the gas cartel, that's why.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I'll take that interjection because I think this is one of the problems with the debate here: there are people in this chamber who seem to believe that the fact that we have a different policy position is because somehow we're corrupt. I think that's really offensive, actually. It's really offensive because we on this side—I'm sorry, Senator Pocock. Fair enough.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Wong, please resume your seat. Senator Pocock?

David Pocock (ACT, Independent) Share this | Link to this | Hansard source

Senator McKim will get his question at some stage. I'd really love an answer to mine.

Sue Lines (President) Share this | Link to this | Hansard source

I'll remind the minister of your question. Thank you.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The view that the Treasurer has articulated is that this is about ensuring a fair return to the Australian people for the resources they own. It is also about providing certainty to industry and making sure Australia remains a reliable trade and investment partner. There are a range of policy objectives which are all, I would argue, in the national interest and which, in arriving at this position after substantial consultation, the government has to balance. We've sought to do that. I accept that, if you are only thinking about one aspect of those, you might come up with a different— (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pocock, second supplementary?

David Pocock (ACT, Independent) Share this | Link to this | Hansard source

Given so many Austrians are facing cost-of-living pressures and feeling increased climate impacts, how does the government justify increasing fossil fuel subsidies and not genuinely reforming the PRRT so that we are at least getting a return from the sale of our gas?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I'm happy to have a discussion with you about some of those assertions because I don't believe them to be correct, but I accept that there is a bit of political rhetoric. This government has been very clear about the importance of acting on climate. We have brought forward an ambitious policy on that. You will see in this budget also our commitment to the transition in our economy. You made a number of assertions there about PRRT which I don't accept. We have reformed this measure because we think that is justified. I've explained to you the various policy objectives that have to be balanced in that. But it is not the only thing we are doing in the energy space. We do, as a country, have to transition. We do, as a country, have to reform. We do, as a country, want to be a renewable energy superpower, and we are committed to ensuring we do all we can to deliver that.