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Budget lowers tax for oil and gas industry

by Callum Foote | Mar 30, 2022 | Lobbyland

Among the budget commitments is deregulation for the oil and gas industry, reducing taxes paid even further, along with $50 million to remove barriers to project approval.

These include:

 – removing all renewal requirements for excise and excise-equivalent customs goods licences; removing licence fees; enabling the ATO and ABF to issue entity-level licences in addition to site-level licences; and providing blanket permission to move goods between sites controlled by licensed businesses 

– removing onshore producers of crude oil and condensate from the excise system until and unless they exceed the relevant production threshold to be liable for excise payments 

– extending the time limit to apply for a refund of excise overpayments from 12 months to 4 years after payment, to align with refunds of customs duty 

– creating a public register of excise and excise-equivalent customs goods licences administered by the ATO. 

• amend the excise and excise-equivalent customs duty regime for fuel by: 

– introducing a refund provision, similar to that in the excise law, for excise-equivalent customs duty on petroleum-based oils used in the further manufacture of petroleum lubricants, ending double taxation of these oils 

– removing the requirement to pay and then claim Fuel Tax Credits in respect of excise or excise-equivalent customs duty on fuels used in domestic commercial shipping (‘bunker fuels’), aligning their treatment with the duty-free treatment of bunker fuels for international voyages

The additional $50.3 million is to “accelerate priority gas infrastructure projects towards final investment decision”. 

Callum Foote

Callum Foote was a reporter for Michael West Media for four years.

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