Budget initiatives good for petroleum sector: APPEA

THE Australian Petroleum Production & Exploration Association has welcomed several initiatives in the Federal Government’s 2006-07 budget.
Budget initiatives good for petroleum sector: APPEA Budget initiatives good for petroleum sector: APPEA Budget initiatives good for petroleum sector: APPEA Budget initiatives good for petroleum sector: APPEA Budget initiatives good for petroleum sector: APPEA

APPEA chief executive Belinda Robinson said today changes to the depreciation arrangements recognised the shortcomings of current arrangements for capital-intensive industries.

“Increasing the diminishing value rate from 150 to 200 percent will allow many taxpayers to effectively speed up the rate by which they can claim deductions,” Robinson said.

“This will in turn assist Australian investors in competing for international funds for large scale capital projects.”

APPEA also welcomed the government’s confirmation of $A100 million in funding over five years for Australia’s involvement in the Asia Pacific Partnership on Clean Development and Climate (AP6).

“APPEA strongly supports the AP6 and has been an active participant in the Cleaner Fossil Energy Task Force, attending the recent meeting in the US,” Robinson said.

APPEA’s involvement in AP6 is particularly focused on priorities for action for natural gas.

"Natural gas has approximately half the life-cycle greenhouse gas emissions of coal-fired power stations,” Robinson said.

“Australian natural gas is one energy source, supplied as LNG, which is also particularly well placed to meet the broader aims of the AP6 partners. The partnership is not only about climate change but also about clean energy development in the context of poverty alleviation, urban air quality and regional security.”

Robinson said the upstream petroleum industry’s underlying direct contribution to government revenues had again been highlighted by the quantum of resource taxation payments made by the industry.

“Based on Budget material, APPEA estimates that the sector is likely to contribute more than $3 billion dollars in resource taxes alone to the Federal Government in 2005-06 (this excludes the significant level of corporate taxation payments made by the industry),” she said.

“Such revenue provides the Government with important funding that assists in its on-going commitment to easing the burden on Australian families and taxpayers.”

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