Tammy Tyrrell (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Senator Lambie and I have worked with the Greens and with Senator David Pocock to make you an offer. We're prepared to back your changes to the petroleum resource rent tax, with one tweak. We want to do what you're already planning to do, which is capping the use of credits to a company's tax bill. All we're saying is it should be capped at 80 per cent instead of 90 per cent. In exchange, you'll have the numbers to pass your legislation. An alternative way to get your numbers is to support what the Leader of the Opposition has called for and cut the regulation of oil and gas. I know you won't say whether you're going to accept the opposition's demands, so I'll just ask it this way: does the Albanese government believe the oil and gas industry is over-regulated?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Thank you, Senator Tyrell. Just in relation to the preamble to your question, in terms of working with you, we will work with anybody in this chamber to get our legislation through. As you know, sometimes that involves different voting arrangements, but the Greens have certainly indicated that they won't be supporting the bill as it exists, so we will be looking to the coalition to back in this sensible and modest change to the PRRT.

In relation to over-regulation, I would say no, I don't believe they're over-regulated. In relation to the PRRT, we have consulted with industry around the design of that measure to ensure that we are doing a number of things: returning money to the budget sooner and at a higher level than would normally have been the case, to ensure that we've got investment happening in the country, to ensure that we've got gas available to households and business as we need to as we transition to a net zero economy and, thirdly, that we meet our international obligations. We are mindful of those three things as we finalise arrangements for the PRRT.

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

Senator Tyrell, a first supplementary?

Tammy Tyrrell (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

I've noticed the Treasurer said that the government's proposed change is going to mean offshore oil and gas pay more tax, but if these companies are being prevented from using some of their credits to pay their tax bill, and those credits carry forward, won't they just have tax-deductible credits for longer? In other words, over the life of a project won't every company pay the same amount of tax that they would have paid without this change?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

To date, the PRRT revenue predominantly relates to oil and gas produced in the Bass Strait, so no offshore LNG project has paid PRRT yet. Most offshore LNG projects are not expected to pay substantial amounts of PRRT before 2030. Whilst they are earning significant revenues from Australia's gas resources, our PRRT revenue collections in 2021-22 were $1.64 billion. We're estimating that, between 2023-24 and 2026-27, there'll be revenue in the order of $10.8 billion. This reform, which does bring forward revenue to the budget in the forward estimates, will raise an additional $2.4 billion in revenue across those four years.

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

Senator Tyrell, a second supplementary?

Tammy Tyrrell (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

If capping credits at 90 per cent brings in more tax sooner, as the Treasurer has claimed, what would capping credits at 80 per cent do?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I'm not in a position to answer that. I don't have that information in front of me, because that isn't the government's policy. If there is anything else I can provide the Senate, I will look and see, but I would also imagine that Senator Tyrrell, Senator Lambie and Senator Pocock would be engaging directly with the Treasurer on that, as would normally be the case for legislation as we bring it forward to this chamber.

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

Thank you, Minister. I call Senator Dean Smith.

Marielle Smith (SA, Australian Labor Party) Share this | Link to this | Hansard source

Actually me.

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

I beg your pardon. Sorry to raise your hopes, Senator Dean Smith.

Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

It's the good Smith!

Marielle Smith (SA, Australian Labor Party) Share this | Link to this | Hansard source

It's the good Smith!

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

My mistake. I call Senator Marielle Smith.