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A leading environmental and economic think tank is calling for urgent fossil fuel industry tax reforms that could add hundreds of billions of dollars to government coffers, accelerate decarbonisation on a national level, and even help to fix the current energy market crisis.The report, by Climate Energy Finance, offers a scathing review of how everyday Australians lose out due to the favourable financial treatment of coal and gas companies.
It says that closing Australia’s tax loopholes for multinational corporations, introducing export levies and overhauling longstanding fossil fuel subsidy and rebate schemes could raise $322 billion in tax and royalty income over the coming decade.
Hyper-inflated fossil fuel commodity prices and large profits being reported by the companies that produce them has led to widespread calls in Australia for reforms to force corporations to pay billions of dollars more in annual taxes and forego hefty rebates.
“It beggars belief that companies that say they are the backbone of Australia’s budget revenue cry wolf to secure handouts,” said CEF director and senior market analyst Tim Buckley.
The report points to existing tax structures that have allowed the top 20 fossil fuel multinationals to generate $113 billion in revenue but pay only $1.3 billion in corporate tax last year, labeling them “no longer fit for purpose” and failing to deliver projected government returns.
— see full article at reneweconomy.com.au
