Meeting with the Government’s Policy Transition Group, DomGas Alliance Chairman Tony Petersen said an exemption would provide a significant incentive for gas producers to develop further domestic gas supply, and would also recognise the critical role of domestic gas to Australia’s economy.
According to the Western Australian Government and industry projections, the state faces a worsening domestic gas shortage in the coming decade, with a shortfall as high as 600 TJ/d.
The Alliance said their preference was to exempt domestic gas production from the PRRT, but also outlined alternative options available to the government, such as a 150 per cent exploration uplift for domestic gas projects, an $A50 million threshold before tax cuts, increased deductibility for development costs, and a “Flow Through Shares” scheme to make it easier for smaller, emerging domestic gas producers to raise development funds.
“It is important that the Commonwealth supports, or at the very least not undercut, the State’s efforts to encourage domestic gas supply,” Mr Petersen said.