The Senate Inquiry into Corporate Tax Avoidance report released today reveals the Labor Party is signing off on the Liberals' policy not to touch the tax system for existing petroleum resource projects. The Australian Greens said that this will allow hundreds of billions of dollars of petroleum resources to be extracted without a cent in royalties or taxes paid under the Petroleum Resource Rent Tax for decades to come.
It was confirmed in Senate Estimates today that the generous system of tax losses carried forward by just a handful of gas companies has now reached a staggering $279 billion, which is equal to 15.9% of GDP. Big fossil fuel companies will have to use up all these tax credits before finally handing over any money to the ATO.
Labor has confirmed today that, should they form government after the next election, the current system for existing projects will remain in place, where the value of these tax credits has grown by an average of 30% a year over the past five years.
“Labor has signed off on the Liberals’ plan to allow big fossil fuel companies like Chevron to profit off our limited natural resources without paying a cent in royalties or tax under the PRRT for existing projects for decades to come,” Greens Leader Dr Richard Di Natale said.
“At a time when these gas reserves need to be kept in the ground and under the sea, this bipartisan consensus on handing out hundreds of billions of dollars in tax breaks to big fossil fuel companies will see us pollute even more while also robbing the public purse of much-needed revenue.
“With the Liberals receiving $388,000 from Chevron over the past decade and Labor on the take for $280,000, it is no wonder Chevron’s tax plans won’t be challenged."
“The growth rates of these tax credits make Sydney’s property market look tame,” Greens Treasury spokesperson Senator Peter Whish-Wilson said.
“While the Australian people continue to be fleeced, the party in Canberra continues for big politics and big business, feasting on this mutually beneficial gravy train
'It's a complete rort, we shouldn’t be giving away our national wealth to these big fossil fuel companies for free.
“Countries around the world put a realistic price on accessing their limited natural resources and Australia should too.
“The Greens’ plan to charge a flat 10 per cent royalty at the wellhead will bring in up to $1.4 billion of revenue a year which we can put to use properly funding our schools and hospitals and all essential services.
“Rather than help the Treasurer continue to kick this can down the road, the Labor Party should be joining the Greens in making sure the big fossil fuel companies pay their fair share in tax.”