The tax man cometh for the gas industry

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 66 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 90%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

OPINION: The Labor government is not about to follow the UK example of a windfall profits tax on the gas industry but high prices and a push by the ATO means the budget will still get billions of extra dollars in revenue from offshore LNG projects.

As well as demanding a ban on new coal and gas projects, the Greens are naturally quick to insist that a Labor government should impose a windfall profit tax on resources projects benefiting from high prices.

Before the election, for example, Labor’s small target strategy meant the opposition limited itself to raisingby making changes to how deductions for debt were structured and imposing greater restrictions on tax havens. Despite the emotive rhetoric of a “crackdown”, this is relative to corporate tax of about $100 billion this financial year alone.

This is another big win for the ATO in its long-running disputes with BHP and Rio Tinto over the costs and pricing assigned to their marketing hubs in low-taxing Singapore. In another significant settlement in 2018, BHP paid the ATO more than $500 million in revised tax assessments over five years.Even so, Anthony Albanese’s expression of enthusiasm for the potential of other pending ATO settlements has to be put in a more complicated context for the resources industry.

The huge upfront costs for LNG projects meant bigger tax write-offs over a longer timeframe with most gas companies considered unlikely to be liable for the tax before the end of the decade at best. Most of the money raised by the PRRT – about $1 billion last financial year – has instead come from declining oil fields in the Bass Strait.that his October budget would not include an increase to the PRRT. Thanks to higher oil prices, Treasury expects to raise $2.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

China is about to hit us hard by controlling iron ore buying price monopoly Taxes on iron ore are going to be squeezed so a chance to grab gas super profits tax Resources wont last forever

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

How the plastic industry turned the pandemic to its advantageWith its products proving indispensable to combatting Covid-19, the plastics business is reinvigorated. What will it take to bring this major polluter to heel?
Source: GuardianAus - 🏆 1. / 98 Read more »

Mining sector desperate for workers as industry struggles to win over Gen ZAustralia's mining sector is facing its 'worst skills crisis in generations', and leaders say the key challenge is convincing environmentally conscious young people to join its ranks. I’ll take an electrical apprenticeship thanks Why aren’t women rushing to get into mining? I thought fixing the so-called gender wage gap was a priority. wagegap
Source: abcnews - 🏆 5. / 83 Read more »