Chalmers reveals gas tax revenue is up in federal budget

Jim Chalmers will deliver the federal budget on Tuesday. (ABC News: Callum Flinn) The federal budget will contain a lift in forecast revenue from the petroleum resource rent tax. The federal government has refused calls for a broader 25 per cent tax on gas exports, pointing to existing taxes and its new east coast reservation policy. The federal budget will be delivered on Tuesday. Link copiedShareShare articleTreasurer Jim Chalmers has revealed the tax on offshore gas projects has raised more revenue than expected this year, as he prepares to hand down a budget focused on fixing a "broken" housing market and tax system. Mr Chalmers is widely expected to break an election promise and overhaul the 50 per cent capital gains tax discount and negative gearing in Tuesday night's budget, which he admitted contained "a lot of political risk". "The status quo in the housing market and in the tax system is broken," he told the ABC. "It's not working. It is locking out too many Australians and we're not building enough homes." Mr Chalmers hasn't ruled out sparing existing investors, and new builds, from the changes to negative gearing, referring to "transitional arrangements" when asked whether he would grandfather the more than 1 million Australians who currently take advantage of the tax break. "When any government is considering changes of this nature, obviously, they work through the transitional arrangements and the transitional considerations," he said. "I think any responsible government going down that path would do that." The budget will include another $2 billion to build infrastructure including water, power and sewerage for housing developments, which the government says will unlock 65,000 new homes over the next decade. Labor is behind on its target of building 1.2 million homes by 2029. Among the tax changes to be unveiled on Tuesday, the government will also make the $20,000 instant asset write-off for small businesses permanent. In the lead-up to the budget, the government had examined options for a windfall tax on gas giants and changes to the petroleum resource rent tax (PRRT), but the prime minister killed off the move, concerned it could upset the trading partners Australia is relying on for fuel. However, Labor insiders concede the "gas tax" campaign is cutting through in the community and last week, a cross-party senate committee urged the government to revisit the issue once the conflict in the Middle East had concluded. The PRRT will raise more revenue than previously forecast. (Supplied: Woodside Energy) One Nation leader Pauline Hanson has also picked up on the campaign, proposing an equity scheme in which the federal government would take an ownership stake in multi-billion-dollar projects, and funnel the revenue raised into a sovereign fund. "What I want is a system where we will own part of that equity share in the exploration of gas, so we are not just going to allow them to take it," Senator Hanson said. Mr Chalmers said the government was already taking "big and meaningful steps" in the gas market, pointing to a new east coast reservation policy unveiled last week, and that it was not proposing any changes to the existing tax arrangements. "There's a lot of very strong views about it. I do understand the arguments that people are making," he said. "I did change the PRRT in our first term to get more revenue sooner. "There will be a bit of an upgrade to PRRT revenue in the budget on Tuesday night. "I know that people would like us to go further but there are good reasons to prioritise fuel supply and gas reservation."

Chalmers reveals gas tax revenue is up in federal budget

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