The Australia Institute (TAI) has released research showing how Australia’s (PRRT) is broken and could help plug Australia’s budget deficit:
There have been a number of calls for a windfall profits tax especially on foreign-owned mining and petroleum companies that have been the beneficiaries of massive price increases, especially following Russia’s invasion of Ukraine…
Australia already has a tax, the Petroleum Resource Rent Tax (PRRT), that is supposed to share in the super profits that are generated in the oil and gas industries. However, that tax has not generated anything like the super profits generated in the sector. The 2022-23 budget estimated that PRRT payments would increase from $1.65 billion in 2021-22 to $2.4 billion in 2022-23 and stay at that level through to 2025-26. That seems a relatively modest lift in the PRRT given the surge in hydrocarbon prices. Gas export values, for example, increased by almost $3 billion a month or around 65 per cent in July 2022 compared with the same month a year ago while volumes have remained stable.
