One Nation leader Pauline Hanson has unveiled a controversial gas policy that would abolish the offshore gas profits tax and acquire 30% equity stakes in new projects, a move she says will deliver "vastly greater returns" for Australian taxpayers. The proposal, inspired by Norway's model, was outlined in a speech to a major gas industry conference in Adelaide on Thursday.
Policy Details and Reactions
Hanson criticized the existing Petroleum Resource Rent Tax (PRRT) as a "failure" and rejected a proposed 25% export levy, calling it "economic vandalism." Instead, she proposed a new royalty regime for new projects and a government equity acquisition scheme. Under the plan, the government would offer companies a 30% rebate on exploration costs in Commonwealth waters in exchange for an equity stake of up to 30% in the operation. The profits from these stakes would be directed into a sovereign wealth fund, similar to Norway's approach.
The proposal drew sharp criticism from the Coalition, with Liberal frontbencher James Paterson likening it to policies from Venezuela. "That is a policy borrowed from Venezuela and Hugo Chávez, not Australia," Paterson told Sky News. He acknowledged the principle of better returns but rejected nationalizing the oil and gas industry.
Hanson denied the plan was a "socialist takeover," emphasizing that the government investment body would not have a day-to-day role in running partner gas companies. She claimed there had been no pushback from industry during private briefings and noted that mining billionaire Gina Rinehart was not consulted.
Industry and Government Responses
The Australian Energy Producers (AEP) welcomed Hanson's support for the sector, defending the current tax system. "As the recent federal budget confirmed, our existing tax system is already working as intended, delivering more tax revenue when international oil and gas prices are high," said AEP chief executive Samantha McCulloch.
However, the Minerals Council of Australia (MCA) opposed government equity stakes in a mature industry. MCA chief executive Tania Constable stated, "It doesn't work. You start these things for fledgling industries, you don't start it halfway through when we've got a mature industry."
Resources Minister Madeleine King argued that the best time for such investment was decades ago. "The best time for Australia to have invested in that part of the industry was 30 or 40 years ago. So that moment has passed," she said.
Coalition's Stance
Opposition Leader Angus Taylor, speaking at the same conference, reaffirmed the Coalition's commitment to abandon net zero emissions targets, scrap the safeguard mechanism, and promote more "digging and drilling" for "energy abundance." He urged the oil and gas industry to "start making noise" and fight detractors, while reiterating opposition to a 25% export tax.
One Nation, with only two lower house seats but surging in opinion polls, is gaining attention for its policies. The equity proposal exposes taxpayers to financial risks, as co-ownership would begin at exploration and continue through decommissioning, potentially lasting decades without immediate returns.
