The Queensland Resources Council has called on the Palaszczuk Government to delay the implementation of any gas royalty increase to January 1 next year.
The 25 per cent increase in gas royalties on domestic and export gas would damage industry viability and increase costs to the electricity and domestic processing and manufacturing sectors, QRC chief executive Ian Macfarlane said.
“Of particular concern is the retrospective introduction of the royalty increase to 1st January, 2019, which will be passed through as an additional charge to gas consumer companies which have already produced and sold their electricity and goods,” he said.
“The gas industry understands its role in delivering returns for all Queenslanders, but the shock tax increase announced in this week’s budget will undo all the benefits Queensland has secured by being the only East Coast state to develop its own gas.
“We’re calling on the Premier and the Treasurer to hold off on any royalty increase until January 1, 2020, instead of rushing it through the Parliament and adding to the existing confusion on domestic gas royalty impacts. “
The legislation for the gas royalty increase as it stood risked pricing Australian LNG exports out of the international market and making domestic gas more expensive for industry users.
“At the very least there should be an exemption for gas sold on the domestic market. We’re calling on the Treasurer to make that commitment as soon as possible,” Mr Macfarlane said.