Gas giants dodge tougher tax hike in Labor-Greens deal

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Gas giants dodge tougher tax hike in Labor-Greens deal
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Oil and gas producers have expressed relief after the government cut a deal with the Greens to pass a relatively modest tax hike for offshore projects.

Oil and gas producers have expressed relief after the Albanese government cut a deal with the Greens to pass a tax increase for fossil fuel projects in Commonwealth waters without ceding to the minor party’s demands for more severe hikes.

Woodside, the biggest Australian oil and gas company, welcomed the resolution of the PRRT legislation “without further amendments”. Woodside is the largest payer of the PRRT, contributing $681 million under the tax last year. “This is a big blow to the coal and gas corporations, a big win for the climate and First Nations voices, and it happened because the Greens have power in parliament,” Greens leader Adam Bandt said.

McCulloch said the deferral of the offshore regulatory reforms was inconsistent with the strategy, which listed offshore regulatory reform as an “immediate action”.

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