Hanson proposes drilling tax break alongside new gas royalty
Australian opposition One Nation leader Pauline Hanson introduced a private bill offering operators a 30% tax break on new gas drilling but imposing a 6% commonwealth royalty on extracted gas, reigniting the federal debate on Australia's energy policy.
In the Australian federal Senate on Wednesday, One Nation leader Pauline Hanson tabled a bill that would grant operators investing in new gas wells in the Cooper, Beetaloo and Surat basins a 30% 'drilling investment offset' against tax. The same bill imposes a 6% commonwealth royalty on all gas extracted.
Hanson said the proposal is 'designed to secure domestic energy supply and channel a share into public coffers'. Under the current Petroleum Resource Rent Tax (PRRT) framework, Canberra collects about A$1.8 billion a year; the Treasury estimates the new 6% royalty could raise an additional A$14 billion over a decade.
The Labor government rejected the bill as 'problematic from both ends', objecting to both the tax break and the new royalty. Environmental groups flagged the subsidy structure as inconsistent with net-zero targets. Origin Energy and Santos closed up 2.1% and 1.4% respectively on Thursday. The bill has slim odds of passing in the short term, but the energy-tax mix is expected to dominate political debate ahead of the October federal election.
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