The Palaszczuk Government is aiming to create and support more jobs and industries under Queensland’s new gas royalty regime announced today.
Treasurer and Minister for Infrastructure and Planning Cameron Dick said that the new volume-based model would support affordable supply for domestic customers, appropriate returns for Queenslanders and fairness for gas producers.
“Queensland’s gas industry continues to do the heavy lifting in supplying the gas for domestic markets in Eastern states, while also meeting the needs of international customers,” the Treasurer said.
“This review has been crucial in ensuring that oil and gas companies are treated fairly, and that Queenslanders receive their fair share of royalties from this important industry.
“The model is transparent, equitable, administratively simpler and locked in for five years.
“Importantly, the new model supports the Palaszczuk Government’s commitment to create more jobs in more industries.
“The royalty rates are also locked in for five years to provide certainty for producers.”
The review, undertaken by a working group independently chaired by former South Australian Premier Jay Weatherill, examined different royalty models.
Mr Weatherill concluded that the current royalty regime was not suitable for the existing configuration of the Queensland gas industry and recommended that a volume-based model be adopted.
The volume-based model will see royalties calculated on the volume of gas produced and will include a sliding rate scale and producers’ sales revenue.
“I thank Mr Weatherill, petroleum producers and industry groups including the Queensland Resources Council and the Australian Petroleum Production and Exploration Association for their diligence and commitment to working through the consultation process,” the Treasurer said
“I give this commitment to the petroleum and gas sector – the Palaszczuk Government will continue to consult with industry prior to implementing the changes to the petroleum royalty regime.”
The Queensland Petroleum Royalty Review report can be found here www.treasury.qld.gov.au/petroleum-royalty-review
Treasurer, Minister for Infrastructure and Planning
The Honourable Cameron Dick