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Up in smoke: Australia’s petroleum resources tax is failing to collect a fair amount of revenue from LNG projects. When Morrison announced a formal review of the PRRT in October last year he warned of a rapid decline in revenues from the tax. He said PRRT revenues had halved since 2012-13 in Australia, while crude oil excise collections had fallen by more than half. There have been no changes to the PRRT since 2012 and we think it is timely that these matters be addressed, and be addressed in time for these matters to be considered in the preparation for next years budget, he said at the time. It is actually not primarily about revenue. It is important these companies pay their fair share when it comes to these issues. Jason Ward from the Tax Justice Network said the Senates crossbenchers were increasingly aware of the notion of an energy crisis in Australia, with a looming domestic shortage of liquified natural gas , while the country was on the verge of becoming the worlds biggest exporter of LNG, with the government unlikely to get anything for its resources. So how do you square having a domestic energy shortage with being the worlds largest exporter with no revenue? he said. Its a situation that needs to be addressed. According to the Treasury, in 2005 the government collected $1.9bn in PRRT and last year that figure fell to $1.4bn. PRRT revenue is estimated to fall again to just $800m when Australia becomes the worlds dominant LNG exporter by 2021. She said her modelling showed $5bn in revenue would be raised from Gorgon by 2030 if royalties were reintroduced.

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