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Aussie budget closes condensate tax loophole

Oil & Gas Journal

Western Australia also is a loser as two thirds of the excise went to the state government under the old scheme. However the federal government said it will compensate the state for lost revenue, beginning with an initial $80 million this financial year and building to a total of $406 million over 4 years.

Not surprisingly, industry is unhappy with the change. Belinda Robinson, chief executive officer of the Australian Petroleum Production & Exploration Association, said industry was surprised by the government's move and concerned at the absence of any prior consultation.

"Given the magnitude of the investments involved and the important contribution of the petroleum industry to the Australian economy, a strong partnership between industry and government is critical," Robinson said. "Investment decisions are made on the basis of certainty that fiscal frameworks agreed with governments will underpin the long-term economic viability of projects."