Pauline Hanson, leader of the One Nation party, unveiled a gas policy Thursday to replace the Petroleum Resource Rent Tax with flat royalties [1].
The proposal seeks to shift how the Australian government generates revenue from energy projects while attempting to lower the financial barriers for new drilling. By altering the tax structure, the party aims to stimulate investment and increase the overall supply within the gas sector [1].
Under the plan, the current Petroleum Resource Rent Tax would be removed for new gas projects [1]. In its place, One Nation proposes a flat royalty based on production [1]. This shift is designed to reduce the tax burden on companies initiating new extraction efforts [1].
Additionally, the policy suggests a direct government role in energy production. Hanson said the Commonwealth be allowed to purchase a 30% equity stake in future drilling projects [2]. This mechanism would allow the federal government to hold a direct ownership interest in the resources being extracted [3].
Hanson said the goal is to encourage more drilling and ensure the government benefits directly from the projects. The proposal has already drawn criticism from both the Labor party and the Coalition [1].
The policy focuses on the balance between private industry incentives and public ownership. By combining a simplified tax regime with a partial equity model, One Nation intends to create a framework that attracts developers, and maintains a state-level financial interest in the commodities [1].
“Replace the Petroleum Resource Rent Tax with a flat royalty on production”
This proposal represents a departure from traditional Australian resource taxation by combining deregulation—via the removal of the Petroleum Resource Rent Tax—with a state-led investment model. If implemented, a 30% public equity stake would move the government from a purely regulatory and taxing role to a partner in commercial energy ventures.
