Australia is on track to match Qatar as the world's biggest liquefied natural gas exporter next year. The boost to the budget bottom line? Virtually nil. While the Gulf nation is forecast to rake in A$26.6-billion (about R245-billion) in fiscal 2020 from fuel taxes, Australia is set to reap a paltry A$800-million, according to the Tax Justice Network's Australian office. Australia's petroleum resource rent tax levies 40% on profits after company tax has been paid, a system that works pretty well for oil projects but is a poor fit for LNG. An oil venture can be cash positive within a few years of production, while LNG needs significantly more capital expenditure, prolonging the time before it generates enough cash to pay tax, a government report has found. The figures "are an indication the fiscal regime for Australia's LNG sector is broken", said Juan Carlos Boué, who made a submission to Australia's inquiry on tax avoidance while working as an oil industry consultant at the Oxford ...
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