Usually we would think of Australia holding a very big advantage over the neighbor island of papa New Guinea but in the case of how they tax gases, the neighbor to the north coast has the upper hand. Australia could use them as an example on how to handle this tax issue.
- The image below shows the large integrated gas-to-LNG projects in Australia: offshore natural gas in the west, and onshore coal seam gas in the east.
- The focus of resource tax reform should be on gas projects in Commonwealth waters off Western Australia.
- All countries with petroleum resources levy additional resource taxes, which result in industry paying high taxes.
“Above-normal profits from these new projects are perhaps a decade away, which is why there has been a recent drop in resource tax revenue.”