Gas Royalties at Point of Extraction?

<-- Federal Election 2025

One Nation has advocated for levying gas royalties at the point of extraction, aiming to create a domestic gas reserve and generate significant revenue, estimated at up to $13 billion per year, by taxing the "rort" on natural gas.

Here's a more detailed breakdown:

One Nation's Position:

One Nation has consistently argued that Australian governments are giving away gas royalty-free, allowing multinational companies to make substantial profits without adequately contributing to the Australian economy. 

Proposed Solution:

To address this, One Nation proposes to implement a system where royalties are charged on natural gas at the point of production, rather than at later stages of processing or export. 

Potential Benefits:

• Increased Government Revenue: One Nation estimates that such a system could generate up to $13 billion in annual revenue. 
• Domestic Gas Reserve: By taxing the extraction of gas, One Nation believes it will incentivize companies to prioritize domestic use of gas, creating a secure domestic gas reserve.

Current Situation:

Australian governments currently charge no royalties on a significant portion of exported gas, with estimates suggesting that 56% of gas exports are royalty-free.

This means that multinational companies have been able to export gas without paying royalties, resulting in a substantial loss of revenue for the Australian government.  

Other Perspectives:

The Australia Institute has also argued that a gas windfall profits tax could raise upwards of $20 billion. 
The Australia Institute has also released polling that shows two-thirds of people surveyed supported the introduction of a windfall profits tax on the oil and gas industry. 

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It is time to end the gas rort either by charging royalties at point of extraction as One Nation advocates, or through some form of windfall profits tax as advocated by The Australia Institute? (AGREE/DISAGREE)

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