Appea calls for gas incentives ahead of federal budget

Appea on Monday said the development of both the natural gas industry and new technology could drive economic recovery and reduce emissions.

In its 2022/23 federal Budget submission, Appea called for economy-wide investment allowances for large projects and new technology initiatives cutting carbon emissions; the immediate deductibility of wages and salaries; as well as the removal of barriers to oil and gas project restructuring.

The blueprint also includes expanding the Junior Minerals Exploration Incentive (JMEI) for junior oil and gas explorers to secure additional local supply for the future.

New net-zero initiatives include amending the Offshore Petroleum and Greenhouse Gas Storage Act 2006 to allow for reservoir testing for the examination of carbon capture, use and storage (CCUS) use as well as supporting carbon capture opportunities through acreage releases. 

Appea CEO Andrew McConville said the industry was key to securing Australia’s competitive advantage through its work ensuring energy supply and decarbonising for a clean energy future.

“This is a plan that delivers cleaner, secure energy supplies while lifting us out of the tough times of the pandemic,” he said.

“Australia and its government have a massive, once-in-a-generation opportunity to make policy decisions to provide foundations for the future growth of our economy. A recent Ernst & Young report found national economic output could rise over A$350-billion and create over 220 000 jobs in the next 20 years, but only if the settings are right.

“And, of course, our industry will continue to deliver taxation revenue that helps to build the nation’s roads, schools and hospitals.”

McConville said the industry was a partner for economic recovery and decarbonisation as Australia emerges from the pandemic with a focus to achieve net zero by 2050.

“For change to come, government must recognise the need for change and have the courage to make change with a clear vision of ensuring a globally competitive oil and gas industry with the right tax policies, investment incentives and efficient environmental regulation. We must reduce regulatory duplication and overlap, support sensible investment allowances, promote the creation of new job opportunities and underpin the investment in and adoption of new technology.

“To do otherwise would be irresponsible and risk depriving future generations of Australians the wonderful opportunity that our resources sector presents.”