Commonwealth Grants Commission wants states to get fair reward for gas development

Recent articles


Tweets

27 March 20, 9:46am The latest @AEMO_Media GSOO figures show actions taken by the #oilandgas industry to bring more #natgas into the do… https://t.co/fIHlcXRBaN
array(24) { ["created_at"]=> string(30) "Thu Mar 26 23:46:21 +0000 2020" ["id"]=> int(1243323433380765697) ["id_str"]=> string(19) "1243323433380765697" ["text"]=> string(398) "The latest @AEMO_Media GSOO figures show actions taken by the #oilandgas industry to bring more #natgas into the do… https://t.co/fIHlcXRBaN" ["truncated"]=> bool(true) ["entities"]=> array(4) { ["hashtags"]=> array(2) { [0]=> array(2) { ["text"]=> string(9) "oilandgas" ["indices"]=> array(2) { [0]=> int(62) [1]=> int(72) } } [1]=> array(2) { ["text"]=> string(6) "natgas" ["indices"]=> array(2) { [0]=> int(96) [1]=> int(103) } } } ["symbols"]=> array(0) { } ["user_mentions"]=> array(1) { [0]=> array(5) { ["screen_name"]=> string(10) "AEMO_Media" ["name"]=> string(4) "AEMO" ["id"]=> int(811971001) ["id_str"]=> string(9) "811971001" ["indices"]=> array(2) { [0]=> int(11) [1]=> int(22) } } } ["urls"]=> array(1) { [0]=> array(4) { ["url"]=> string(23) "https://t.co/fIHlcXRBaN" ["expanded_url"]=> string(52) "https://twitter.com/i/web/status/1243323433380765697" ["display_url"]=> string(29) "twitter.com/i/web/status/1…" ["indices"]=> array(2) { [0]=> int(117) [1]=> int(140) } } } } ["source"]=> string(71) "Twitter Web App" ["in_reply_to_status_id"]=> NULL ["in_reply_to_status_id_str"]=> NULL ["in_reply_to_user_id"]=> NULL ["in_reply_to_user_id_str"]=> NULL ["in_reply_to_screen_name"]=> NULL ["user"]=> string(8) "APPEALtd" ["geo"]=> NULL ["coordinates"]=> NULL ["place"]=> NULL ["contributors"]=> NULL ["is_quote_status"]=> bool(false) ["retweet_count"]=> int(1) ["favorite_count"]=> int(5) ["favorited"]=> bool(false) ["retweeted"]=> bool(false) ["possibly_sensitive"]=> bool(false) ["lang"]=> string(2) "en" }
by APPEALtd
26 March 20, 2:14pm Australia’s #oilandgas sector will operate more efficiently and help with the nation’s economic recovery from… https://t.co/j5GESnmZrg
array(24) { ["created_at"]=> string(30) "Thu Mar 26 04:14:51 +0000 2020" ["id"]=> int(1243028616671145984) ["id_str"]=> string(19) "1243028616671145984" ["text"]=> string(266) "Australia’s #oilandgas sector will operate more efficiently and help with the nation’s economic recovery from… https://t.co/j5GESnmZrg" ["truncated"]=> bool(true) ["entities"]=> array(4) { ["hashtags"]=> array(1) { [0]=> array(2) { ["text"]=> string(9) "oilandgas" ["indices"]=> array(2) { [0]=> int(12) [1]=> int(22) } } } ["symbols"]=> array(0) { } ["user_mentions"]=> array(0) { } ["urls"]=> array(1) { [0]=> array(4) { ["url"]=> string(23) "https://t.co/j5GESnmZrg" ["expanded_url"]=> string(52) "https://twitter.com/i/web/status/1243028616671145984" ["display_url"]=> string(29) "twitter.com/i/web/status/1…" ["indices"]=> array(2) { [0]=> int(111) [1]=> int(134) } } } } ["source"]=> string(71) "Twitter Web App" ["in_reply_to_status_id"]=> NULL ["in_reply_to_status_id_str"]=> NULL ["in_reply_to_user_id"]=> NULL ["in_reply_to_user_id_str"]=> NULL ["in_reply_to_screen_name"]=> NULL ["user"]=> string(8) "APPEALtd" ["geo"]=> NULL ["coordinates"]=> NULL ["place"]=> NULL ["contributors"]=> NULL ["is_quote_status"]=> bool(false) ["retweet_count"]=> int(3) ["favorite_count"]=> int(9) ["favorited"]=> bool(false) ["retweeted"]=> bool(false) ["possibly_sensitive"]=> bool(false) ["lang"]=> string(2) "en" }
by APPEALtd
25 March 20, 5:00pm The #natgas industry has increased supply to local customers and is doing so at competitive prices. Australian dome… https://t.co/q1AOF38Pv7
array(24) { ["created_at"]=> string(30) "Wed Mar 25 07:00:42 +0000 2020" ["id"]=> int(1242707967553626112) ["id_str"]=> string(19) "1242707967553626112" ["text"]=> string(265) "The #natgas industry has increased supply to local customers and is doing so at competitive prices. Australian dome… https://t.co/q1AOF38Pv7" ["truncated"]=> bool(true) ["entities"]=> array(4) { ["hashtags"]=> array(1) { [0]=> array(2) { ["text"]=> string(6) "natgas" ["indices"]=> array(2) { [0]=> int(4) [1]=> int(11) } } } ["symbols"]=> array(0) { } ["user_mentions"]=> array(0) { } ["urls"]=> array(1) { [0]=> array(4) { ["url"]=> string(23) "https://t.co/q1AOF38Pv7" ["expanded_url"]=> string(52) "https://twitter.com/i/web/status/1242707967553626112" ["display_url"]=> string(29) "twitter.com/i/web/status/1…" ["indices"]=> array(2) { [0]=> int(117) [1]=> int(140) } } } } ["source"]=> string(71) "Twitter Web App" ["in_reply_to_status_id"]=> NULL ["in_reply_to_status_id_str"]=> NULL ["in_reply_to_user_id"]=> NULL ["in_reply_to_user_id_str"]=> NULL ["in_reply_to_screen_name"]=> NULL ["user"]=> string(8) "APPEALtd" ["geo"]=> NULL ["coordinates"]=> NULL ["place"]=> NULL ["contributors"]=> NULL ["is_quote_status"]=> bool(false) ["retweet_count"]=> int(2) ["favorite_count"]=> int(4) ["favorited"]=> bool(false) ["retweeted"]=> bool(false) ["possibly_sensitive"]=> bool(false) ["lang"]=> string(2) "en" }
by APPEALtd
24 March 20, 3:40pm Australia’s #oilandgas industry is responding to the personnel and operational challenges posed by the #COVID19Aus… https://t.co/Mpgxh6sUan
array(24) { ["created_at"]=> string(30) "Tue Mar 24 05:40:18 +0000 2020" ["id"]=> int(1242325347653128194) ["id_str"]=> string(19) "1242325347653128194" ["text"]=> string(351) "Australia’s #oilandgas industry is responding to the personnel and operational challenges posed by the #COVID19Aus… https://t.co/Mpgxh6sUan" ["truncated"]=> bool(true) ["entities"]=> array(4) { ["hashtags"]=> array(2) { [0]=> array(2) { ["text"]=> string(9) "oilandgas" ["indices"]=> array(2) { [0]=> int(12) [1]=> int(22) } } [1]=> array(2) { ["text"]=> string(10) "COVID19Aus" ["indices"]=> array(2) { [0]=> int(103) [1]=> int(114) } } } ["symbols"]=> array(0) { } ["user_mentions"]=> array(0) { } ["urls"]=> array(1) { [0]=> array(4) { ["url"]=> string(23) "https://t.co/Mpgxh6sUan" ["expanded_url"]=> string(52) "https://twitter.com/i/web/status/1242325347653128194" ["display_url"]=> string(29) "twitter.com/i/web/status/1…" ["indices"]=> array(2) { [0]=> int(116) [1]=> int(139) } } } } ["source"]=> string(71) "Twitter Web App" ["in_reply_to_status_id"]=> NULL ["in_reply_to_status_id_str"]=> NULL ["in_reply_to_user_id"]=> NULL ["in_reply_to_user_id_str"]=> NULL ["in_reply_to_screen_name"]=> NULL ["user"]=> string(8) "APPEALtd" ["geo"]=> NULL ["coordinates"]=> NULL ["place"]=> NULL ["contributors"]=> NULL ["is_quote_status"]=> bool(false) ["retweet_count"]=> int(1) ["favorite_count"]=> int(4) ["favorited"]=> bool(false) ["retweeted"]=> bool(false) ["possibly_sensitive"]=> bool(false) ["lang"]=> string(2) "en" }
by APPEALtd

Changes to the GST distribution system flagged by the Commonwealth Grants Commission would encourage states and territories to develop their own gas resources, while also discouraging of non-evidence-based restrictions and moratoriums.

The Grants Commission’s aim is to ensure that revenue assessments do not unduly penalise or reward states that, in similar circumstances, adopt very different policies towards the development of their natural gas resources. This goal is both welcome and timely.

The Commission stated in a position paper released yesterday: “that all States that have CSG have the opportunity to exploit it and whether they do or not solely reflects policy choice”.

APPEA Chief Executive Dr Malcolm Roberts said the current system disadvantaged jurisdictions that developed gas resources while rewarding those that did not.

“Royalties from onshore gas development are currently included in the calculation of state and territory revenues for GST purposes,” Dr Roberts said.

“This provides a perverse incentive to impose unscientific bans on gas development because the loss of revenue is shielded by increased shares of GST revenue.

“The commission’s suggestion, if implemented, would provide a strong incentive for states and territories to lift restrictions on gas development.

“More gas would ease supply pressures, enhance Australia’s energy security and help put downward pressure on prices.

“As Queensland has shown, responsible development of onshore gas resources also helps stimulate employment and economic growth in regional areas.”

Dr Roberts said the proposed change was a key issue to be addressed in the Commission’s 2018 update.  It is particularly important for Queensland and South Australia, which are promoting the development of their resources but are effectively punished under the current system for doing so.

“This change should apply to all forms of natural gas development, including the CSG developments referenced in the paper,” Dr Roberts said.

“The Grants Commission’s view on revenue from gas development would be a valuable input into the Productivity Commission’s current inquiry into horizontal fiscal equalisation.”

APPEA’s submission to that inquiry can be found at this link.