Great OP moo.....
Closing the gas loophole
Ah, closing a tax loophole – that wouldn’t be a new tax, or even a levy. The Dutton opposition would have a hard time frightening the horses over that, given how ripped-off the Commonwealth has been by sweetheart deals with Big Carbon.
The money at stake is massive. Three years ago, the Australia Institute reckoned fixing the gas transfer pricing rort could increase Commonwealth revenue by $68 billion between 2027 and 2039, and $89 billion between 2023 and 2050.
And that was when gas was cheap.
https://thenewdaily.com.au/opinion/2022/06/11/michael-pascoe-gas-tax/?utm_source=Adestra&utm_medium=email&utm_campaign=Saturday%20News%20-%2020220611Asian liquified natural gas (LNG) spot prices are now about three times what they were in 2019 – so pick whatever multiple of $89 billion you like – depending on how long you think Russian gas will have pariah status and how long it takes the world to wean itself off carbon.
LNG transfer pricing is a somewhat arcane tax matter. The 2019 Australia Institute report by Rod Campbell explains the fiddle for those with the patience, but the bottom line is obvious and has been for years:
Australia, one of the world’s top five gas exporters, is a soft touch for well-connected Big Carbon, taxing it at much lower rates than the likes of Norway, Malaysia, Qatar or Saudi Arabia. And PRRT revenues had been declining – it was only $800 million last year, and that was after some loophole tightening.
When the previous government finally responded to the Callaghan Review after much “stakeholder” consultation (“Is that OK with you? You really don’t mind? Sure?”), the changes it instituted on non-transfer elements of the PRRT were forecast to raise $6 billion over 10 years – chicken feed compared with what it left alone.
