Michael Sukkar (Deakin, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

I move:

That this bill be read a second time.

This bill imposes a temporary levy on offshore petroleum production. The purpose of the levy is to recover the costs of decommissioning the Laminaria-Corallina oilfields and associated infrastructure. It will ensure that taxpayers are not left to pay these costs.

The levy will be at a rate of 48c per barrel of oil equivalent and be paid on an annual basis, in arrears. The first payment made will be for the 2021-22 financial year and be payable in the first half of 2022-23.

All entities with an ownership interest in a petroleum production licence issued under the Offshore Petroleum and Greenhouse Gas Storage Act 2006will be liable to pay the levy.

The ATO will administer the levy. The levy will be in place until the net costs associated with the decommissioning have been recovered or 30 June 2030 at the latest. Once net costs have been recovered, the levy will cease.

The government remains committed to keeping the Laminaria and Corallina oilfields and associated infrastructure, and the surrounding marine environment, safe and secure.

Public consultation occurred, and the government accepted a number of recommendations put forward by industry in the final design and operation of the levy.

As such, the final design of the levy ensures it's temporary, targeted and effective at recovering costs with as little regulatory burden as possible.

Full details of the measures are contained in the explanatory memorandum.

Debate adjourned.