leviathan near, page-29

It's not really an issue. It's just a case of a greedy tax office trying to get more than it's entitled share. They also wanted to hit the group with a CGT type tax a few months back but failed because they couldn't establish that a CGT type transaction occurred. This situation now is similar except it's over LNG margin.

The tax committee setup to steer this have within their own mandate that exporters like Woodside can make about anywhere from 5-6% to 17-18% returns. Given that LNG is more expensive to invest in (than say exploration), it's reasonable to see why Woodside demanded the higher end of the yield. And so, the tax office will more than likely cave in again and allow WPL to retain it's current margin as too many vested interests want to see it go ahead - including the PM there. Worse case scenario is that the group may have to front a one-off transaction or lower the yield to 15-16%, which will be determined by their tax commissioner. It's either that or they lose the deal and nobody there really wants that.