Prime Minister Anthony Albanese has ruled out adopting a so-called super profits tax on oil and gas producers to cover power price hikes as he flags additional measures to help ease cost of living pain.
Albanese has told ABC AM he’s not tempted to follow the UK and adopt a similar measure in Australia.
“No, we won’t be going down that track. What we will be doing is identifying how we can make a practical difference in addition to the announcements that we made during the election campaign about cost of living,” the prime minister said.
He blamed rising power prices approved by the Australian Energy Regulator on nine years of “policy chaos” under the Coalition, and spruiked Labor’s plans to invest in renewables and upgrade electricity transmission.
“We’ve had a neglect of the ageing grid. Our plan is to put downward pressure on prices by boosting renewables and storage in the grid,” Albanese said.
“We need to tackle cost of living. The good news is that our climate change plan will put downward pressure on prices at the same time as it creates jobs and economic activity.”
Quite right. There’s no need for a “super profits tax”. But there is a need for a tax. Any tax:
New analysis of data published by the Australian Tax Office (ATO) shows that five of the gas industry’s most prominent companies have paid no income tax for at least the past seven years, despite a combined income from their Australian operations of $138 billion.
Four of the five members of the Australian Petroleum Production & Exploration Association (APPEA) (Arrow Energy, Australia-Pacific LNG, Chevron and ExxonMobil) that haven’t paid any income tax are foreign owned resulting in all profits heading straight offshore…
Key Findings:
In a 2012 APPEA claimed Queensland coal seam gas LNG companies would have paid around $11.2 billion in federal income tax by 2020. They have paid almost none.
In 2015 Chevron estimated it would have paid around $4 billion in “direct taxations and royalties” by 2020. It has paid no income tax or resource tax over that period.
In 2013 Shell claimed that its Prelude floating LNG project would pay $12 billion in taxes over the life of the project. Shell has since acknowledged it will never pay PRRT has paid no income tax since 2015.
An eighth company, Australian company Santos, paid just $6 million income tax on $28.9 billion of income, and paid no income tax from 2015 to 2018 and 2020.
A thorough overhaul of taxation of the oil and gas industry in Australia is long overdue.
Just as pressing is the need to trigger the Australian Domestic Gas Reservation Mechanism (ADGSM) to stop the phenomenal energy price shock with the stroke of a pen.
It appears we are going to be governed by an intellectually feeble weakling who is easily manipulated by “gotcha moments”.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
Albo has been PM for 5 days now and has not formed a cabinet and has not announced who will be the minster for mining. But yep, still all Labor’s fault.
Mr Tezza
Based on Alb’s words in AFR it’s quite clear that he’s not planning any meaningful action on this matter.
Still cut him some slack?
TheLambKingMEMBER
Yeh, because a new minister can get appointed, learn about the portfolio, get advice, then change direction!
FFS – 5 days. 1 person cannot be across every every single thing that has not been the LNP job for the last 9 years.
But this will be the MSM and most of the other media until the next election to ensure the LNP get back in.
YabbaMEMBER
He has been in parliament for 26 years. He should be across it, and have a pretty good idea what the policy should be by now.
MalMEMBER
LNP lite.
They were captured by the Liberals in the campaign to promise “No new Taxes” and “no carbon taxes” for 3 years.(or ever)
Not going to risk getting a massive advertising campaign in week 1 by the mining/gas companies like the Mining Tax campaign of the Rudd /Gillard govenrments. .
sps179MEMBER
I think you will find that “our climate change plan” will be the Albanese Government’s answer to many a diverse policy question. Even when it has got nothing to do with the question.
Know IdeaMEMBER
It has the advantage of giving the impression that they care.
tmnsoon
So far climate change policy is worse than the actual climate change.
Mr Tezza
Hope and pray he doesn’t get the majority. Or it will be more of the same…
BB_AU
5 days in and we have the LNP with a promise to be polite and a diversity label pin.
lmfao….
Mr Tezza
+1
To his credit, he didn’t promise to deliver anything else.
Captured as anyone before him.
dystopeon
Friendly Jordies Payroll @ work.
tmnsoon
What’s he going to talk about now that the LNP is out of office?
JasonMEMBER
Why is it ADGSM and not ADGRM?
bnwwwMEMBER
Australian Domestic Gas Security Mechanism.
Bloke
The PRRT is a stupid scheme, which the mining super profit tax was a copy of. It should be scrapped and replaced with royalties like the states have.
Jacob
Yep.
Russia has imposed for a long time an export tax of 30% on gas.
Bubbley
Ruddy hell, they’ve been in power for less than 5 days!
Give them a chance. Ripping into a new government traditionally starts at the 100 day mark.
They haven’t had enough time to change the names on the doors yet.
Mr Tezza
I beg to differ: he SAYS he wants to change the way politics works.
Here is an obvious opportunity to show some action.
Jevons ghostMEMBER
FDR’s 1933 inauguration speech. Wonderful prose from a great leader.
“…the only thing we have to fear is fear itself. ”
“They haven’t had enough time to change the names on the doors yet.
Or clean the stains off the desks.
Bubbley
True. Every female senator is going need the room gone over with a blue light before she steps in.
Make that all of them.
ZuluMEMBER
With the Conservative party in UK having just implemented a super profits tax, it’s the perfect time, he can use that to fight off Libs criticisms!
happy valleyMEMBER
“It appears we are going to be governed by an intellectually feeble weakling who is easily manipulated by “gotcha moments”.
Sadly, he’ll see lots of businesses and families go the wall over power prices.
Bubbley
Another land mine left by the LNP.
JamesC
Rudd was rolled by the mining industry for his tax stance. Much better for Albo and friends to stand in parliament and give Keating like speeches on Angus Taylor and the behaviour of the big Gas extractors. A good two months of slamming, then bring them to the table, and tell them to be good corporate citizens or else. Something like the global market taxes gas exports at this rate, and i hear you say their is nothing you can do on the price here in australia due to the global market….The trick is not end-up hockeying the sector with a general ‘fuck-ya wouldn’t wanna be ya’ ala the Car industry. Hockey did get a better job though, certainly from our point of view.
Does a eunuch count as our first trans prime minister?
First non-binary PM!!
Albo has been PM for 5 days now and has not formed a cabinet and has not announced who will be the minster for mining. But yep, still all Labor’s fault.
Based on Alb’s words in AFR it’s quite clear that he’s not planning any meaningful action on this matter.
Still cut him some slack?
Yeh, because a new minister can get appointed, learn about the portfolio, get advice, then change direction!
FFS – 5 days. 1 person cannot be across every every single thing that has not been the LNP job for the last 9 years.
But this will be the MSM and most of the other media until the next election to ensure the LNP get back in.
He has been in parliament for 26 years. He should be across it, and have a pretty good idea what the policy should be by now.
LNP lite.
They were captured by the Liberals in the campaign to promise “No new Taxes” and “no carbon taxes” for 3 years.(or ever)
Not going to risk getting a massive advertising campaign in week 1 by the mining/gas companies like the Mining Tax campaign of the Rudd /Gillard govenrments. .
I think you will find that “our climate change plan” will be the Albanese Government’s answer to many a diverse policy question. Even when it has got nothing to do with the question.
It has the advantage of giving the impression that they care.
So far climate change policy is worse than the actual climate change.
Hope and pray he doesn’t get the majority. Or it will be more of the same…
5 days in and we have the LNP with a promise to be polite and a diversity label pin.
lmfao….
+1
To his credit, he didn’t promise to deliver anything else.
Captured as anyone before him.
Friendly Jordies Payroll @ work.
What’s he going to talk about now that the LNP is out of office?
Why is it ADGSM and not ADGRM?
Australian Domestic Gas Security Mechanism.
The PRRT is a stupid scheme, which the mining super profit tax was a copy of. It should be scrapped and replaced with royalties like the states have.
Yep.
Ruddy hell, they’ve been in power for less than 5 days!
Give them a chance. Ripping into a new government traditionally starts at the 100 day mark.
They haven’t had enough time to change the names on the doors yet.
I beg to differ: he SAYS he wants to change the way politics works.
Here is an obvious opportunity to show some action.
FDR’s 1933 inauguration speech. Wonderful prose from a great leader.
“…the only thing we have to fear is fear itself. ”
http://historymatters.gmu.edu/d/5057/
How long did they take in 1972?
“They haven’t had enough time to change the names on the doors yet.
Or clean the stains off the desks.
True. Every female senator is going need the room gone over with a blue light before she steps in.
Make that all of them.
With the Conservative party in UK having just implemented a super profits tax, it’s the perfect time, he can use that to fight off Libs criticisms!
“It appears we are going to be governed by an intellectually feeble weakling who is easily manipulated by “gotcha moments”.
Sadly, he’ll see lots of businesses and families go the wall over power prices.
Another land mine left by the LNP.
Rudd was rolled by the mining industry for his tax stance. Much better for Albo and friends to stand in parliament and give Keating like speeches on Angus Taylor and the behaviour of the big Gas extractors. A good two months of slamming, then bring them to the table, and tell them to be good corporate citizens or else. Something like the global market taxes gas exports at this rate, and i hear you say their is nothing you can do on the price here in australia due to the global market….The trick is not end-up hockeying the sector with a general ‘fuck-ya wouldn’t wanna be ya’ ala the Car industry. Hockey did get a better job though, certainly from our point of view.