Sophie Scamps (Mackellar, Independent) Share this | Link to this | Hansard source

My question is to the Prime Minister. Prime Minister, you've spoken about how the petroleum resource rent tax is designed to ramp up over time, but it seems like the government revenue the gas industry promises is always around the corner. Since 2000, prices of goods and services have doubled, Australia's nominal GDP has quadrupled, gas industry revenue is over five times higher, and yet the PRRT raises less money than in 2000. Prime Minister, why won't the government accept that this ramp-up is never coming and simply tax our gas exports?

Anthony Albanese (Grayndler, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Mackellar for her question. Can I say, the first point—and the most important one—is that the government at the moment is focused very much on getting fuel here. That is the priority that happens when you have a conflict in the Middle East and where, around the world, there is a massive economic impact on inflation, on access to resources and on access to fuel. And indeed, in many countries in our own region, they're having compulsory public holidays once a week in order just to get by. That is what is occurring in Sri Lanka, in the Philippines and in other countries.

When it comes to tax, the gas companies are taxed through a range of ways: through company tax, through the royalties that they pay, as well as through the PRRT. Indeed, in the budget on Tuesday night, contrary to the suggestion in the member's question, PRRT revenue was revised up by $1.6 billion in this budget. That's because the very design of the PRRT, which we reformed in our first term, is designed to ramp up over time, because, when you have tens of billions of dollars of investment made, in order to secure resources that are available to Australians, as well as for export, then, over a period of time, that makes sense. Otherwise, you won't get the investment.

What we also have done, of course, is announce the details of our gas reservation plan of 20 per cent of exports in the east coast. That follows on from the Western Australian domestic reservation plan as well. But I make this point about WA domestic reservation: there wouldn't be any gas to reserve were it not for the foreign investment that's occurred. It's as simple as that. That is just a fact. Populism can occur with the far right or the far left. Our government's job is to make sure that appropriate policies are put in place.

In this crisis, we are absolutely focused on getting more fuel here, we're engaging with our partners in the region, and we honour, of course, our existing export contracts because that is the way that you engage in international trade. If you don't do that, then it comes back, certainly, to bite you. One of the things that has been very positive is that we have benefited from the relationships that we have built in the region, whether they be with Singapore, Malaysia, Brunei, South Korea or Japan—we have benefited from the consistency in which we operate, and that, I think, is absolutely important.

We will introduce the domestic gas reservation scheme so more Australian gas stays in Australian homes and businesses. And I note, as well, that gas prices are down, not up, at the moment. (Time expired)