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<\/p>\nThe Labor government should scrap the pretence it cares about renewables and be upfront with Australians, Sky News Political Editor Andrew Clennell says.<\/p>\n
The government took three options from Treasury\u00a0before reforming the Petroleum Resource Rent Tax (PRRT)\u00a0in 2023.\u00a0<\/p>\n
It introduced a 90 per cent deduction cap at the time, ensuring a minimum taxable profit of 10 per cent, seen as the weakest option at the time.\u00a0\u00a0<\/p>\n
Sky News\u2019 Political Editor Andrew Clennell said the path of least resistance on energy reforms was \u201cthe Albanese way\u201d.<\/p>\n
\u201cBut I mean, the biggest fraud that this government perpetuates, one of the biggest, is they say ‘we\u2019re all about net zero, we\u2019re about renewables, that\u2019s our priority’,” he said.\u00a0\u00a0<\/p>\n
\u201cBut the only thing that keeps the budget and the economy going is mining.<\/p>\n
“Why can\u2019t you just be more honest about it instead of pitching for that vote and really perpetuating a bit of a fraud on the Australian people.<\/p>\n
\u201cSay: \u2018look,\u00a0we\u2019re\u00a0trying to develop this, but\u00a0at the moment\u00a0we\u2019re\u00a0living on this\u2019,\u00a0(but) it\u00a0doesn\u2019t\u00a0fit what their base wants to hear.\u201d<\/p>\n
Critics of changing the PRRT, including the Coalition and\u00a0resources companies,\u00a0have argued further taxes on exported gas would damage investment.\u00a0\u00a0<\/p>\n
Those in\u00a0favour\u00a0have pushed for as much as a 25 per cent tax on gas\u00a0exports,\u00a0arguing for more money\u00a0made from extracting Australia\u2019s resources to remain in the nation.\u00a0\u00a0<\/p>\n
Sky News host Laura Jayes argued the current PRRT was \u201cnot fit for purpose\u201d.\u00a0\u00a0<\/p>\n
\u201cWe\u2019re not getting the right return on investment, but there needs to be a quid pro quo here … it\u2019s a complex picture and an oversimplification of it doesn\u2019t serve any of us well,\u201d she said.\u00a0\u00a0<\/p>\n
\u201cBut\u00a0I think the industry\u00a0is just resisting and arguing for their status quo, this train is coming and\u00a0it\u2019s\u00a0going to hit them if they\u00a0don\u2019t\u00a0get involved and start designing it.\u201d\u00a0\u00a0<\/p>\n
Clennell and Jayes both agreed Australians would unlikely see an overhaul of the tax in the federal budget on account of the war in the Middle East.\u00a0<\/p>\n
It comes as a Senate Committee\u00a0yesterday heard from Australian stakeholders supportive of changes to the tax.\u00a0<\/p>\n
Labor\u2019s internal environmental action network pushed the Albanese government to consider a \u201cvery substantial tax\u201d on gas profits made as the war in the Middle East\u00a0bumps margins.\u00a0<\/p>\n
It argued Labor\u2019s membership supported bigger returns for taxpayers, after MP Ed Husic announced he supported a 25 per cent export levy.\u00a0\u00a0<\/p>\n
<\/p>\n
Speaking on Tuesday, however, Opposition Leader Angus Taylor said a 25 per cent levy would kill off Australia\u2019s gas industry.\u00a0\u00a0<\/p>\n
He claimed it would \u201cclose down\u201d the industry, \u201cand that is the intent of that tax\u201d.\u00a0\u00a0<\/p>\n
His colleague Andrew Hastie\u00a0broke ranks earlier in the year<\/a>,\u00a0declaring\u00a0he would be open to a 25 per cent tax.\u00a0<\/p>\n